Depreciation is considered to be an outflow of cash since the cash must be drawn from somewhere.

Name: Depreciation is considered to be an outflow of cash since the cash must be drawn from somewhere.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that represents the gradual decrease in value of an asset over time. It is not an actual outflow of cash, but rather a reduction in the value of the asset on the balance sheet.

Depreciation Is Considered to Be an Outflow of Cash Since