M Which of the statements below is considered incorrect regarding the relationship betweem depreciation and cash? O A. Depreciation is an allocation of the cost of an asset to the periods in which the asset is used. O B. Accumulated depreciation is not a pile of cash waiting to be used. O C. Recording depreciation expense provides a means of setting aside cash for the replacement of an asset. O D. Depreciation does not generate cash. 2 Marks Short-term liquidity is a company's ability to: O A. turn accounts receivable into cash. O B. sell inventory. O c. shift furrent liabilities into long-term liabilities. OD. pay current liabilities as they become due