Which Statement Is True Concerning Depreciation

question 114

Multiple Choice

Which statement is true concerning depreciation?

• A)Depreciation is not a cash flow and does not affect the tax cash flow.
• B)Depreciation is not a cash flow and does affect the tax cash flow.
• C)Depreciation is a cash flow and does not affect the tax cash flow.
• D)Depreciation is a cash flow and does affect the tax cash flow.

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Definitions:

Constitutionally Divided

A term referring to the separation of powers among the different branches of government as defined by a constitution.

Implied

Something suggested or indicated, though not expressly stated.

Internal Revenue Service

The U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

Expressed Powers

Specific powers granted to the government or its branches explicitly mentioned in a constitution, particularly the United States Constitution.