Depreciation expense:
A) reduces both taxes and net income.
B) increases the net fixed assets as shown on the balance sheet.
C) reduces both the net fixed assets and the costs of a firm.
D) is a noncash item that increases net income.
E) decreases current assets, net income, and operating cash flows.

Question

Quizplus · Accepted Answer

Depreciation expense reduces taxable income, thereby reducing taxes, and it also reduces net income as it is an expense.

Depreciation Expense