While depreciation expense is a legitimate deduction from revenues to arrive at net income, it does not require any cash outlay.

While depreciation expense is a legitimate deduction from revenues to arrive at net income, it does not require any cash outlay. As a noncash expense, it should be added back to net income as part of the adjustment needed to produce operating cash flow.

A ) True

B) False: Depreciation expense is not a legitimate deduction from revenues to arrive at net income.

C) False: Depreciation does require a cash outlay

D) False: Depreciation, as a noncash expense, it should be subtracted from to net income as part of the adjustment needed to produce operating cash flow.

E) none of the above

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