Depreciation expense is not a cash flow item but it will affect the calculation of which cash flow item?
A) initial investment.
B) income taxes.
C) salvage value.
D)working capital.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that reduces net income, which in turn reduces the tax liability of the company. Therefore, it affects the calculation of income taxes.

Depreciation Expense Is Not a Cash Flow Item but It