Which of the Following Would Be Most Likely to Occur

question 67

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' reported net incomes would decline.
• B) Companies' net operating profits after taxes (NOPAT) would decline.
• C) Companies' physical stocks of fixed assets would increase.
• D) Companies' free cash flows would increase.
• E) Companies' cash positions would decline.

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Definitions:

Unifying Device

An element in art or literature that serves to bring together various components of the work, creating a cohesive and harmonious whole.

Cave Painting

Prehistoric art found on cave walls or ceilings, primarily depicting animals and human figures, representing some of the earliest forms of human expression.

Lascaux

A complex of caves in southwestern France famous for its Paleolithic cave paintings, showcasing a wealth of prehistoric artwork.

Ground Line

In art, a base line upon which figures are positioned, representing the ground or surface on which the subjects stand or sit.