Depreciation is reported as an expense on the firm's income statement,but does not involve any actual cash.

Name: Depreciation is reported as an expense on the firm's income statement,but does not involve any actual cash.
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Question

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Depreciation is a non-cash expense that represents the gradual decrease in value of a long-term asset over time. Although it is reported as an expense on the income statement, it does not involve any cash outflows.

Depreciation Is Reported as an Expense on the Firm's Income