Depreciation is a source of cash inflow because?

A. it is a tax-deductible non-cash expense
B. it supplies cash cor future asset purchases
C. it is a tax-deductible cash expense
D. it is taxable expense

depreciation is tax deductable because the original purchase of a machine for the business is to benifit the business and taxdeductible.

once the cash is spent and converted into a machine and a company asset the total amount cannot be deducted from the accounts all at once. that is were decreciation comes in, a fraction of the total amount will be remove from the accounts as a tax-deductable, non-cash expense.

SO A is my FINAL ANSWER.....

Is that correct????

Yes, your answer is correct. Depreciation is a source of cash inflow because it is a tax-deductible non-cash expense. When a business purchases a machine or an asset, the cost is typically spread out and deducted over the useful life of the asset through depreciation. Although no actual cash leaves the business at the time of depreciation, it reduces the taxable income of the business, leading to a lower tax liability and providing cash inflow in the form of tax savings. Therefore, option A is the correct choice.