Which of the Following Statements Is False

question 122

Multiple Choice

Which of the following statements is false?

• A)Depreciation expense is added to profit in the operating activities section of the statement of cash flows because it had no cash effect on profit under the indirect method.
• B)Depreciation expense is included in the investing activities section of the cash flow statement.
• C)The only cash effect for depreciation is the tax savings provided by its deduction to derive taxable income.
• D)Depreciation is a non-cash expense that reduces profit but involves no outflow of cash.

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Definitions:

Informal Structure

The unofficial, dynamic aspects of an organization that stem from personal relationships, networks, and social complexities rather than formal rules and hierarchies.

Bureaucracy

A formal organizational structure with a clear hierarchy and strict rules governing operations, often used in large organizations or governments.

Utilitarian Organizations

are groups formed to achieve specific objectives, often for compensation, such as businesses or government agencies.

Ideal Bureaucracies

Theoretical models of organizational structures designed to operate efficiently and rationally through clear hierarchies and rules.