An increase in depreciation expense from $50,000 to $60,000 will cause cash payments for operating expenses to
A) increase by $50,000.
B) decrease by $10,000.
C) increase by $10,000.
D) remain unchanged.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense, meaning it does not involve an actual cash outflow. Therefore, an increase in depreciation expense does not affect cash payments for operating expenses.

An Increase in Depreciation Expense from $50,000 to $60,000 Will