Which One of the Following Will Increase the Operating Cash

question 57

Multiple Choice

Which one of the following will increase the operating cash flow as computed using the tax shield approach?

• A)Decrease in depreciation
• B)Decrease in sales
• C)Increase in variable costs
• D)Decrease in fixed costs
• E)Increase in the tax rate

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Definitions:

Skepticism

The philosophical belief that knowledge is not possible, that doubt will not be overcome by any valid arguments. A philosopher who holds this belief is called a skeptic. Skepticism is not merely personal doubt but also requires systematic doubt, with reasons for that doubt.

Rationalists

Philosophers who believe that reason is the chief source and test of knowledge, as opposed to experience or sensory perception.

Contingently False

A proposition that is not necessarily false but can be false under certain conditions or circumstances.

Statement

A clear and concise expression or declaration of a fact or belief.