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Assertion: Depreciation is a non-cash expense.
Reasoning: Depreciation is the systematic allocation of the cost of a fixed asset over its useful life.

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Both assertion and reasoning are true, and the reasoning is the correct explanation of the
assertion.

Both assertion and reasoning are true, but the reasoning is not the correct explanation of the
assertion.

The assertion is true, but the reasoning is false.

The assertion is false, but the reasoning is true.

answer is A.

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Detailed Solution

Depreciation is a non-cash expense because it represents the allocation of the cost of a fixed asset over its useful life. The reasoning correctly explains why the assertion is true.

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