Which of the Following Is True? Depreciation

question 53

Multiple Choice

Which of the following is true? Depreciation:

• A) is recorded so that net book value represents fair value of assets
• B) does not affect the amount of cash realized from operations as it is a non-cash flow
• C) is added back to net income to calculate cash from operations under the direct method
• D) represents a fund from which to purchase future assets

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