Which of the Following Would Be Most Likely to Occur

question 80

Multiple Choice

Which of the following would be most likely to occur in the year after Congress,in an effort to increase tax revenue,passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales,other operating costs,and tax rates are not affected,and assume that the same depreciation method is used for tax and stockholder reporting purposes.

• A)Companies' after-tax operating profits would decline.
• B)Companies' physical stocks of fixed assets would increase.
• C)Companies' cash flows would increase.
• D)Companies' cash positions would decline.
• E)Companies' reported net incomes would decline.

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Definitions:

Basic Strength

Fundamental virtues or positive traits derived from successfully navigating various stages of psychosocial development.

Intimacy

The close, familiar, and usually affectionate or loving personal relationship with another person or group.

Young Adult Years

A phase of human development that typically spans the late teens through the twenties, characterized by exploration, independence, and laying the foundation for future life paths.

Purpose

An individual's sense of resolve or determination, the intention and aim guiding action or the reason for which something exists or is done.