Which of the Following Statements Best Describes Depreciation

Which of the following statements best describes depreciation?

A) The more depreciation a firm reports, the higher its tax bill, other things held constant.
B) Depreciation reduces a firm's cash balance, so an increase in depreciation would normally lead to a reduction in the firm's net cash flow.
C) Net Cash Flow = Net Income + Depreciation and Amortization Charges.
D) Depreciation and amortization are not cash charges, so neither of them has an effect on a firm's reported profits.