Depreciation Is a Source of Cash Inflow Because

question 76

Multiple Choice

Depreciation is a source of cash inflow because

• A) it is a non-cash expense, so it needs to be added back to net income when using the indirect method.
• B) it supplies cash for future asset purchases.
• C) it is a tax-deductible cash expense.
• D) it is a taxable expense.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Mean

In statistics, it refers to the average value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Scatterplot

A graphical representation displaying the relationship between two quantitative variables.

Correlated

A term indicating a statistically significant relationship between two or more variables, implying that changes in one are associated with changes in the other.