Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A) Cash flow should be calculated on an after-tax basis.
• B)The tax cost to a business should not be regarded as a cost of doing business.
• C) Income tax should be considered a controllable cost.
• D) The value of an enterprise should not be based on pre-tax cash flow.

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Definitions:

Salary Expense Account

An account recording the total amount paid to employees for services rendered during a specific period, before any deductions.

Credit Entries

Entries made in the accounting records that increase liabilities or decrease assets.

Expense Account

An account specifically used to track expenditures related to specific activities, projects, or operations.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a specific amount in the future.