Which of the following is true?

Which of the following is true? 



a. Depreciation: is recorded so that net book value represents fair value of assets
b. Depreciation: does not affect the amount of cash realized from operations as it is a non-cash flow
c. Depreciation: is added back to net income to calculate cash from operations under the direct method
d. Depreciation: represents a fund from which to purchase future assets



Answer: B


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