QUESTION 2construction finance Which one is not correctly me

QUESTION 2-construction finance:

Which one is not correctly mentioned about depreciation?

Attributing the cost of an asset over the useful life of the asset

Decrease in value due to deterioration and/or obsolescene

Cash expenses

Tax deductible expenses

Solution

Depreciation is an annual allowance for the wear and tear, deterioration, or obsolescence of the property machinery .

Depreciation is also an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property, asset , machines etc.

cash expanses are not involved in depreciation because  depreciation reduces net income on the income statement, but it does not reduce the Cash account on the balance sheet.