Depreciation is ________ that the firm ________.
A) an actual cash expense; pays
B) not an actual cash expense; receives
C) not an actual cash expense; pays
D) an actual cash expense; receives

Question

Quizplus · Accepted Answer

Depreciation is not an actual cash expense, but rather an accounting method used to allocate the cost of a long-term asset over its useful life. The firm pays for the asset upfront but does not pay for it again through depreciation. Therefore, depreciation is not an actual cash expense that the firm pays.

Depreciation Is ________ That the Firm ________

Depreciation Is That the Firm