Which of the Following Statement Completions Is Incorrect? for a Profitable

question 50

Multiple Choice

Which of the following statement completions is incorrect? For a profitable firm, when MACRS accelerated depreciation is compared to straight-line depreciation, MACRS accelerated allowances produce

• A) Higher depreciation charges in the early years of an asset's life.
• B) Larger cash flows in the earlier years of an asset's life.
• C) Larger total undiscounted profits from the project over the project's life.
• D) Smaller accounting profits in the early years, assuming the company uses the same depreciation method for tax and book purposes.
• E) None of the above. (All of the above are correct.)

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Definitions:

Diploid

An organism or cell having two sets of chromosomes, typically one set from each parent, denoted as 2n.

Gametes

Mature haploid male or female germ cells which are able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Sporophyte Generation

The 2n, spore-producing stage in the life cycle of a plant. Compare with gametophyte generation.

Liverworts

A phylum of spore-producing, nonvascular, thallose or leafy plants with a life cycle similar to that of mosses.