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Assuming that there are no income taxes, which of the following is correct concerning depreciation? Select one: a.  Depreciation reduces net income but does not change cash from operations. b. Depreciation provides less cash from operations than would have been available without the depreciation. c. Depreciation builds a cash reserve to fund the replacement of plant, property and equipment d. None of the other choices is correct. e. Depreciation increases cash from operations and decreases net income

Assuming that there are no income taxes, which of the following is correct concerning depreciation? Select one: a.  Depreciation reduces net income but does not change cash from operations. b. Depreciation provides less cash from operations than would have been available without the depreciation. c. Depreciation builds a cash reserve to fund the replacement of plant, property and equipment d. None of the other choices is correct. e. Depreciation increases cash from operations and decreases net income

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assuming that there are no income taxes, which of the following is correct concerning depreciation?

Select one:
a.  Depreciation reduces net income but does not change cash from operations.
b. Depreciation provides less cash from operations than would have been available without the depreciation.
c. Depreciation builds a cash reserve to fund the replacement of plant, property and equipment
d. None of the other choices is correct.
e. Depreciation increases cash from operations and decreases net income.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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