Question

des, Depreciation is a
85) Depreciation is a
A) Cash operating expenditure
B) Non cash operating expenditure
C) Cash non operating expenditure
D) Non cash non operating expenditure​

Answer 1

Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used up.

Explanation:

A. The periodic, schedule conversion of a fixed asset into expense as an asset is called depreciation and is used during normal business operations. Since the asset is part of normal business operations, depreciation is considered an operating expense. ... So, depreciation is a non-cash component of operating expenses.

B. Since an operating expense is incurred from normal business operations and a depreciated asset is part of normal business operations, depreciation is considered an operating expense.

C.Since the asset is part of normal business operations, depreciation is considered an operating expense. Depreciation is one of the few expenses for which there is no outgoing cash flow. ... So, depreciation is a non-cash component of operating expenses.

D. Since an operating expense is incurred from normal business operations and a depreciated asset is part of normal business operations, depreciation is considered an operating expense.