Depreciation for a profitable firm:
A)decreases both operating and net income.
B)increases the net fixed assets as shown on the balance sheet.
C)reduces both the net fixed assets and the costs of a firm.
D)is a non-cash expense which increases the net operating income.
E)decreases net fixed assets,net income,and operating cash flows.

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that reduces both operating and net income by allocating the cost of tangible assets over their useful lives.

Depreciation for a Profitable Firm