单选题 Which of the following statements about depreciation is FALSE? A. Depreciation reduces a firm' s tax liability. B. Depreciation is a cash flow. C. Depreciation is a tax-deductible expense. Use the following data to answer Questions. Gross fixed assets 1000 Accumulated depreciation 400 Depreciation expense 100 Salvage value 50 Economic asset life 4 years

【正确答案】 B

【答案解析】Depreciation is a tax-deductible expense. It reduces taxable income and tax expense, but it is not a cash flow. The cash changed hands when the asset being expensed via depreciation was purchased.