Net working capital is a measure of a company's:

A$)$ goodwill.

B$)$ short$-$term liabilities.

C$)$ estimated cash reservoir.

D$)$ shareholders' equity.

$9.$ Which of the following statements about depreciation is correct?

A$)$ Depreciation is subtracted from cost of goods sold to calculate net income.

B$)$ When depreciation expense is incurred, cash balances are reduced.

C$)$ Depreciation expense does not affect net income.

D$)$ Depreciation reduces the book value of assets.