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Which of the following is NOT TRUE about depreciation? A. Depreciation expenses reflects the diminishing value of a firms fixed or long-term assets. B. Depreciation
Which of the following is NOT TRUE about depreciation?
A.
Depreciation expenses reflects the diminishing value of a firms fixed or long-term assets.
B.
Depreciation expenses reduce a firms taxable income.
C.
While depreciation expenses reduce net income, they actually increase operating cash flow (OCF).
D.
All else being equal, youd rather pay more taxes up front and less taxes later, so youll want to record depreciation expenses as slowly as possible.
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