Which of the Following Statements Is CORRECT

question 53

Multiple Choice

Which of the following statements is CORRECT?

• A)The more depreciation a firm reports, the higher its tax bill, other things held constant.
• B)People sometimes talk about the firm's cash flow, which is shown as the lowest entry on the income statement, hence it is often called "the bottom line."
• C)Depreciation reduces a firm's cash balance, so an increase in depreciation would normally lead to a reduction in the firm's cash flow.
• D)Operating income is derived from the firm's regular core business. Operating income is calculated as Revenues less Operating costs. Operating costs do not include interest or taxes.
• E)Depreciation is not a cash charge, so it does not have an effect on a firm's reported profits.

---

Definitions:

Injury Control

Strategies and measures implemented to reduce the frequency and severity of injuries.

Perceptual Oversight

The phenomenon where an observer fails to notice something in their visual domain because their attention is focused elsewhere.

Injury Control

The effort to prevent or reduce the severity of bodily injuries, especially through public health policies and safety guidelines.

Harm Reduction

Strategies and policies aimed at reducing the negative consequences associated with various human behaviors, particularly in public health contexts.