What is the relationship between accumulated depreciation on the balance sheet and current year depreciation on the P&L? Option: Accumulated depreciation is the sum of all past years' depreciation, including the current year., Current year depreciation is subtracted from accumulated depreciation., They are unrelated., Accumulated depreciation is a percentage of current year depreciation.

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What is the relationship between accumulated depreciation on the balance sheet and current year depreciation on the P&L?

Accumulated depreciation is the sum of all past years' depreciation, including the current year.

Current year depreciation is subtracted from accumulated depreciation.

They are unrelated.

Accumulated depreciation is a percentage of current year depreciation.

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Which financial statement does the current year depreciation figure appear in?

Cash Flow Statement

Statement of Changes in Equity

Balance Sheet

Profit and Loss Statement

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What is the base rule used for in forecasting accumulated depreciation?

To estimate the useful life of assets.

To calculate the depreciation rate for the current year.

To add the current year depreciation to the previous year's accumulated depreciation.

To determine the salvage value of assets.

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What is the relationship between deferred tax and depreciation?

"Deferred tax is independent of depreciation"

"Deferred tax is the sum of depreciation over time"

"Deferred tax is the inverse of depreciation

"Deferred tax is calculated as a percentage of depreciation"

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Why is depreciation added back to the PAT when calculating cash flow from operating activities?

Depreciation is a non-cash expense

Depreciation is a revenue item

Depreciation is a liability

Depreciation is a cash inflow

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What is the primary reason for the existence of 'Deferred tax liability' on a balance sheet?

Penalties for late tax payments

Overpayment of taxes in the current year

Discrepancies in depreciation treatment between accounting and tax regulations

Unpaid taxes from previous years