How Does Depreciation Affect Net Cash Flows

question 47

Multiple Choice

How does depreciation affect net cash flows?

• A) Increases taxation payable
• B) Reduces taxation payable
• C) Reduces cash inflows
• D) Increases cash outflows

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Definitions:

Organizational Buying Process

The sequence of steps a business follows when making a purchase decision, including the identification of needs, evaluation of options, and final selection.

Purchase Agreement

A legal document outlining the terms and conditions of a transaction between a buyer and a seller.

Dollar Value

The worth of something measured in units of currency, often used in financial and economic contexts.

Organizational Buying

This involves the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.