Question

Depreciation is a source of cash inflow because

Depreciation is a source of cash inflow because?

A. it is a tax-deductible non-cash expense
B. it supplies cash cor future asset purchases
C. it is a tax-deductible cash expense
D. it is taxable expense

depreciation is tax deductable because the original purchase of a machine for the business is to benifit the business and taxdeductible.

once the cash is spent and converted into a machine and a company asset the total amount cannot be deducted from the accounts all at once. that is were decreciation comes in, a fraction of the total amount will be remove from the accounts as a tax-deductable, non-cash expense.

SO A is my FINAL ANSWER…..

Is that correct????

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