Depreciation expense is $20,000 and the beginning and ending accumulated depreciation balances are $150,000 and $155,000,respectively.What is the cash paid for depreciation?
A)$20,000
B)$5,000
C)$0
D)$25,000

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense, so no cash is paid for it. The change in accumulated depreciation reflects the depreciation expense recorded, not cash paid.

Depreciation Expense Is $20,000 and the Beginning and Ending Accumulated