State the effect on profit and cash of depreciating a non-current asset.Question 4Select one:a.decrease in profit and decrease in cash.b.no effect on profit and decrease in cash.c.no effect on profit and no effect on cash.d.decrease in profit and no effect on cash.

Which of the following statements is true?Depreciation reduces the value of a fixed asset.Inventory value can be negative.The cash balance in the balance sheet at the end of a period is the total cash generated for the period.Cost of goods sold (COGS) includes salary of employees and depreciation expenses.

Depreciation for a profitable firm:Group of answer choicesincreases the net fixed assets as shown on the balance sheet.reduces both the net fixed assets and the costs of a firm.decreases net income by less than $1 for every $1 of depreciation expense.decreases net fixed assets, net income, and operating cash flows.is a non-cash expense which increases the net operating income.

Which of the following activities would not have an effect on cash? 1 pointDepreciation of office equipment.Payment of bank interest.Payment of dividends.Collections from customers.

Identify the effect, if any, that each of the following transactions would have upon cash and retainedearnings. The first transaction has been completed as an example.Note: Transactions that affect profits do not necessarily affect cash.

Which of the following statements are true?I. To measure relevant project cash flows, the analyst take the difference between “doing” vs. “not doing” a projectII. Depreciation is a non-cash item, but it saves cash taxesIII. Use the average of historical cash flows from similar past projects instead of estimating future cash flowsIV. Include salvage (or terminal) values that recover the initial investmentI and II onlyII and III onlyI, II and IV onlyI and IV onlyAll of the statements are true