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    Financial Management Principles and Applications Study Set 2
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    Exam 12: Analyzing Project Cash Flows
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    Depreciation Expenses Affect Tax-Related Cash Flows by
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Depreciation Expenses Affect Tax-Related Cash Flows by

Question 82

Question 82

Multiple Choice

Depreciation expenses affect tax-related cash flows by


A) increasing taxable income, thus increasing taxes.
B) decreasing taxable income, thus reducing taxes.
C) decreasing taxable income, but not altering cash flows since depreciation is not a cash expense.
D) all of the above.

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