Which of the Following Statements Is FALSE

question 83

Multiple Choice

Which of the following statements is FALSE?

• A)Depreciation is a method used for accounting and tax purposes to allocate the original purchase cost of the asset over its life.
• B)Sometimes the firm explicitly forecasts free cash flow over a shorter horizon than the full horizon of the project or investment.
• C)Earnings include the cost of capital investments,but do not include non-cash charges,such as depreciation.
• D)Firms often report different depreciation expenses for accounting and for tax purposes.

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Definitions:

Levy

Imposition of a tax, fee, or fine by a government or regulatory authority.

Consumption

The act of using goods and services to satisfy needs or wants.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Quantity Demanded

Quantity demanded is the amount of a good or service consumers are willing and able to purchase at a specific price level within a given time period.