Asked by
Alaiya Smith
on Nov 13, 2024
Verified
To determine annual cash inflow depreciation is
A) subtracted from net income because it is an expense.
B) subtracted from net income because it is an outflow of cash.
C) added back to net income because it is an inflow of cash.
D) added back to net income because it is not an outflow of cash.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
Cash Inflow
The total amount of money being transferred into a business, from operations, investments, or financing activities.
- Determine how depreciation affects annual cash inflow calculations.
Verified Answer
AK
Learning Objectives
- Determine how depreciation affects annual cash inflow calculations.
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