Q514
In cash flow estimation, depreciation shelters company's income from
A.
expansion
B.
salvages
C.
taxation
AnswerD.
discounts
Answer: Option C
Solution
Answer: Option C
Solution:
In cash flow estimation, depreciation shelters company's income from taxation. Cash flow indicates a cash outflow and cash inflows. It is necessary to estimate the cash flow in the process of analyzing investment proposal. While analyzing the cash flow, it is also necessary to estimate the cash outflow as well as cash inflow.