Which Statement Is True Concerning Depreciation

Which statement is true concerning depreciation?

A) Depreciation does not affect after-tax cash flow.
B) Depreciation should be considered in the cash flow analysis.
C) Depreciation is not affected by income tax laws which specify the allowable methods.
D) Depreciation is a method used in financial accounting to allocate the cost of an asset over its useful life,but has no application for managerial accounting purposes.

Correct Answer:

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