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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Definitions:

IT Specialist

A professional knowledgeable in information technology, responsible for the implementation, monitoring, and maintenance of IT systems.

Job Evaluation

A systematic process used to determine the relative worth or value of jobs within an organization based on criteria such as skills, responsibilities, and working conditions.

Skilled-Based System

A system that focuses on the skills and abilities employees possess or need to acquire, rather than on job titles or positions.

Job Ranking System

The simplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth.