7 lines
429 B
Markdown
7 lines
429 B
Markdown
Depreciation reduces profit on the income statement but **no cash actually leaves the company** — that's why it gets added back in the Operating Activities section of the cash flow statement.
|
|
|
|
The other traps:
|
|
|
|
- **A)** Land is **never depreciated** — it doesn't wear out
|
|
- **B)** Depreciation is explicitly a **non-cash** expense
|
|
- **D)** That describes the **declining-balance method** — straight-line is equal every year |