Q522
In cash flow estimation, depreciation is considered as
A.
cash charge
B.
noncash charge
AnswerC.
cash flow discounts
D.
net salvage discount
Answer: Option B
Solution
Answer: Option B
Solution:
In cash flow estimation, depreciation is considered as noncash charge. A company will take a non-cash charge against non-cash items on the balance sheet, such as depreciation, amortization, and depletion. These charges are typically made when something unusual happens, often outside the control of the company.