On a reconciliation of net income to cash from operations, depreciation is treated as an adjustment to net income because depreciation:
A) is a direct outflow of cash.
B) reduces net income but does not involve an outflow of cash.
C) reduces net income and involves an outflow of cash.
D) is an outflow of cash to a reserve account for replacement of assets.
Correct Answer:
Verified
Q72: The amortization of bond discount on long-term
Q73: What effect does the write-off of an
Q74: Which of the following is a deduction
Q75: When using the direct method for reporting
Q76: Cash paid for income taxes under the
Q78: A loss on the sale of machinery
Q79: Under the direct method, cash paid to
Q80: Which of the following causes a net
Q81: An asset (land) was purchased and payment
Q82: Choose the correct statement about preparation of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents