Which of the Following Would Most Likely Not Be Depreciated

question 130

Multiple Choice

Which of the following would most likely not be depreciated or amortized using the straight-line method?

• A) Copyrights.
• B) Franchise.
• C) Timber reserves.
• D) Trademark.

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Definitions:

Statement of Cash Flows

A finance report summarizing every cash inflow from ongoing business operations and external investments, and all cash outflows for corporate activities and investment purposes, within a set period.

Operating Activities

The primary day-to-day activities of a business involved in producing and selling its goods or services, reflected in the cash flow statement.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for non-cash transactions and changes in working capital accounts to arrive at net cash flow from operating activities.

Increase in Cash

An upward movement in the cash balance of a business during a specific period of time.