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Examveda

In cash flow estimation, depreciation is considered as

A. cash charge

B. noncash charge

C. cash flow discounts

D. net salvage discount

Answer: Option B

Solution(By Examveda Team)

In cash flow estimation, depreciation is considered as noncash charge. A company will take a non-cash charge against non-cash items on the balance sheet, such as depreciation, amortization, and depletion. These charges are typically made when something unusual happens, often outside the control of the company.

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