Depreciation
A)reduces both the net fixed assets and the costs of a firm.
B)decreases net fixed assets,net income,and operating cash flows.
C)is a noncash expense that decreases the selling,general,and administrative expenses.
D)is a noncash expense that reduces the pretax income.
E)increases the net fixed assets as shown on the balance sheet.

Question

Quizplus · Accepted Answer

Depreciation is a noncash expense that reduces the pretax income by allocating the cost of tangible assets over their useful lives.