Which of the Following Statements Is Incorrect

question 21

Multiple Choice

Which of the following statements is incorrect?

• A) Depreciation is an internal transaction.
• B) The cash at bank account is affected by depreciation.
• C) Depreciation causes cash flow from operations to be greater than profit.
• D) The total depreciation charged over the life of the asset should be the same regardless of the method of depreciation used.

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