Which Statement Is True About Amortization

question 22

Multiple Choice

Which statement is true about amortization?

• A) Amortization is a cash expense that provides tax shield benefits.
• B) The greater the amortization expenses in earlier years,the lower the present value of the project
• C) The CCA amortization schedules supersede other methods for tax purposes
• D) The cash inflow from amortization increases profit.

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Definitions:

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all data will fall within three standard deviations (denoted as sigma) of the mean.

Numerical Descriptive Measures

Statistics that quantitatively describe or summarize features of a collection of information, such as mean, median, mode, and range.

Population Measurements

The process of obtaining and analyzing specific characteristics or parameters of a defined group of individuals to generalize findings.

Mound-Shaped

A description of a graph of a dataset that has a symmetrical bell-shaped appearance, reflecting a normal distribution.