Which of the following is true about expenses on the income statement?

$*$I forgot to point this out in class today so let's take this quiz as an opportunity to learn something....

Basic income statement below....

We DID talk about what makes depreciation special

Hopefully you know taxes are paid in cash $$

Look where depreciation is located compared to taxes....does it result in a firm paying MORE taxes or LESS taxes? Is th it be good or bad for you$)?$

Sales

$($COGS$)$

$($Defiation$)$

EBIT aka Earnings Before Income and Taxes

$($Interest$)$

EBT aka Earnings Before Taxes

$($Taxes$).$

Net Income

Depreciation expense is noncash; taxes are cash; depreciation expense comes before taxes are calculated which is good since this resu

Depreciation expense is noncash; taxes are cash; depreciation expense comes after taxes are calculated which is good since this result

Depreciation expense is cash; taxes are noncash; depreciation expense comes before taxes are calculated which is good since this rest

Depreciation expense is cash; taxes are noncash; depreciation expense comes after taxes are calculated which is good since this result