Which of the Following Statements Is CORRECT

question 10

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) Because a firm's cash flow is shown as the lowest entry on the income statement,people often call it "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.

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Definitions:

Interpersonal Skills

Skills used by individuals to communicate and interact effectively with others in a social context.

Workplace

A location or setting where individuals are employed and engage in activities related to their job or profession.

Acting On Information

The process of taking action based on the data or knowledge one has received.

Relationship

A connection, association, or involvement between individuals, whether personal, professional, or otherwise.