Depreciation Allowance _________ the Profit Subject to Taxation, Which_______ the Amount

question 43

Multiple Choice

Depreciation allowance _________ the profit subject to taxation, which_______ the amount of tax the firm pays.

• A)decreases; decreases
• B)increases; increases
• C)increases; decreases
• D)decreases; increases

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Definitions:

Divergent Thinking

A way of solving problems and generating creative ideas by exploring many possible solutions.

Heuristic Thinking

A mental shortcut that allows individuals to solve problems and make judgments quickly and efficiently.

Functional Fixedness

Functional fixedness is a cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering the ability to see alternative uses or solutions.

Flexibility

The ability to adapt to new, different, or changing requirements and situations.