New Year Sale 2026! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IMANET CMA Exam - Topic 6 Question 28 Discussion

Actual exam question for IMANET's CMA exam
Question #: 28
Topic #: 6
[All CMA Questions]

A depreciation tax shield is?

Show Suggested Answer Hide Answer
Suggested Answer: B

A tax shield is something that will protect income against taxation. Thus, a depreciation tax shield is a reduction in income taxes due to a company's being allowed to deduct depreciation against otherwise taxable income. -


by Danica at May 03, 2022, 12:46 PM

Limited Time Offer

25%

Off

Get Premium CMA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Edelmira
4 months ago
I thought depreciation was just an expense, not a cash provider!
upvoted 0 times
...
Slyvia
4 months ago
Definitely not an after-tax cash outflow, that's misleading.
upvoted 0 times
...
Amina
4 months ago
Wait, is it really just about cash flow from depreciation?
upvoted 0 times
...
Carlee
4 months ago
Totally agree, it's all about that tax benefit.
upvoted 0 times
...
Bettina
5 months ago
It's a reduction in income taxes!
upvoted 0 times
...
Kerrie
5 months ago
I recall something about depreciation being an expense, but I don't think that's what the tax shield is about. It might be more about the tax savings.
upvoted 0 times
...
Brice
5 months ago
I'm not entirely sure, but I feel like it could also be about tax reductions, so B seems plausible too.
upvoted 0 times
...
Bernardo
5 months ago
I remember practicing a question that mentioned cash flow benefits from depreciation, which might point to C.
upvoted 0 times
...
Andra
5 months ago
I think the depreciation tax shield is related to how depreciation reduces taxable income, so maybe it's B?
upvoted 0 times
...
Derrick
5 months ago
Hmm, this question seems a bit confusing. I'll need to read it carefully and try to break down the key terms and concepts.
upvoted 0 times
...
Ronald
5 months ago
I'm a bit confused. Is it really that different from using cp and then rm?
upvoted 0 times
...
Donte
5 months ago
Hmm, this self-join question seems tricky. I'll need to think carefully about the key differences between self-joins and regular joins.
upvoted 0 times
...
Jamie
5 months ago
I'm a little confused by the terminology in the answer choices. IKEv1 cluster, IKEv2 backup gateway, IKEv2 load balancer - it's a lot to keep track of. I'll need to read through the options carefully and try to match them to what I see in the image.
upvoted 0 times
...

Save Cancel