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igor_vitrenko [27]
3 years ago
5

Which of the following statements about depreciation is correct?

Business
1 answer:
Oliga [24]3 years ago
4 0

Answer:

The correct answer is letter "C": To calculate the cash produced by the business, it is necessary to add the depreciation charge back to accounting profits.

Explanation:

Depreciation indicates how much value was used up for an asset. It also tries to match an asset's cost to the profit this helps the business collect. Depreciation calculations used as income tax deduction offer companies and annual allowance for the use and deterioration of tangible assets. Besides, depreciation must be added to the company's accounting profits to determine the firm's total inflow.

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