Which of the Following Questions Is FALSE

question 7

Multiple Choice

Which of the following questions is FALSE?

• A)Net Working Capital = Current Assets - Current Liabilities.
• B)Because depreciation is not a cash flow,we do not include it in the cash flow forecast.
• C)Tax loss carrybacks allow corporations to take losses during the current year and use them to offset income in future years.
• D)Earnings are an accounting measure of firm performance.

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Definitions:

Metamorphosis

A profound change in form from one stage to the next in the life history of an organism, as from caterpillar to butterfly.

Larva

The immature, wingless, and often worm-like stage in the life cycle of insects, before they transform into adults.

Pupa

A transitional stage of a developing insect, after larva and before adulthood, during which it undergoes transformation.

Cocoon

A protective casing spun by the larvae of many insects, inside which they undergo metamorphosis into their adult form.