Which of the Following Statements About Depreciation Is TRUE

Multiple Choice

Which of the following statements about depreciation is TRUE?

A) The amortization method chosen does not affect cash inflows from operations.
B) The amortization method chosen for taxes will not affect cash outflows.
C) The total amount of amortization over the life of the assets differs with different amortization methods.
D) Since amortization does not involve a cash expenditure, it can be ignored in capital-budgeting decisions.