Why Is an Adjustment Made to Net Income When Calculating

question 98

Multiple Choice

Why is an adjustment made to net income when calculating NOPAT?

• A)It is an amount on which income taxes are not considered.
• B)This adjustment amount has no cost of capital associated with it.
• C)Only assets that incur no interest costs are included with NOPAT.
• D)Divisional managers have no ability to control costs such as these.

---

Definitions:

Depression

A common mental disorder characterized by persistent sadness, lack of interest or pleasure in activities, and an overwhelming sense of despair.

Maladaptive Attitudes

Unhelpful or dysfunctional beliefs that negatively influence one's behavior and emotional well-being, often contributing to psychological distress.

Aaron Beck

An influential American psychiatrist known for developing cognitive therapy, particularly for depression.

Cognitive Symptom

Manifestations of conditions that affect cognitive processes, often influencing learning, memory, perception, and problem-solving abilities.