Depreciation:
A) is a noncash expense that is recorded on the income statement.
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 noncash expense recorded on the income statement, reflecting the allocation of the cost of tangible assets over their useful lives.