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.

The statement "Depreciation reduces the value of a fixed asset" is true.

Here's why:

1. Depreciation is the process of allocating the cost of a tangible asset over its useful life, which is a way of accounting for the wear and tear on the asset over time.

2. When a company purchases a fixed asset, such as a piece of machinery, that asset begins to lose value as soon as it's put to use. This loss in value is accounted for through depreciation.

3. Each accounting period, a portion of the asset's cost is expensed. This reduces the asset's book value on the balance sheet.

4. Over time, the accumulated depreciation will continue to reduce the book value of the asset until it reaches its salvage value or the end of its useful life.

The other statements are not generally true. Inventory value cannot be negative, the cash balance in the balance sheet at the end of a period is not necessarily the total cash generated for the period, and COGS does not typically include the salary of employees and depreciation expenses.