Pick the correct statement related to depreciation from below.

Multiple Choice

• Depreciation reduces both the net fixed assets and the costs of a firm.

• Depreciation reduces taxes but not net income.

• None of the given statements is correct.

• Depreciation is a noncash expense which also decreases the net income.

• Depreciation decreases net fixed assets, net income, and operating cash flows.

James will make sure that he will consider ______________ in working out the financial plan for his firm sometime next week.

I. the net working capital needs

II. the products to be sold in Mexico

III. the employees to be hired locally

IV. the customers to whom the firm's products are sold

Multiple Choice

• I only

• III only

• II, III, and IV only

• I and III only

• IV only