cash charge
noncash charge
cash flow discounts
net salvage discount
Answer is Right!
Answer is Wrong!
The correct answer is: B. noncash charge.
Depreciation is a non-cash charge because it does not involve the movement of cash. It is an accounting entry that reduces the value of an asset over time. Depreciation is used to allocate the cost of an asset over its useful life.
Cash flow estimation is the process of determining the amount of cash that a company expects to generate or spend over a period of time. Cash flow estimation is important for planning and budgeting purposes. It is also used to calculate a company’s free cash flow, which is a measure of a company’s financial health.
The other options are incorrect because:
- A. cash charge is incorrect because depreciation is a non-cash charge.
- C. cash flow discounts is incorrect because depreciation is not a discount.
- D. net salvage discount is incorrect because depreciation is not a discount.
I hope this helps! Let me know if you have any other questions.