Recording Depreciation

question 39

Multiple Choice

Recording depreciation:

• A)decreases net income and cash flows.
• B)decreases net income but has no effect on cash flows.
• C)decreases net income,fixed assets,and cash flows.
• D)decreases net income but has no effect on fixed assets and cash flows.

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Definitions:

Assembly Department

is a section in manufacturing where components are assembled into final products.

First-In, First-Out Method

An inventory valuation method that assumes goods are sold in the order they are acquired, with the oldest inventory items sold first.

Materials

Raw substances or components used in the manufacturing or production process.

Assembly Department

A division within a manufacturing facility where components are assembled into finished products.