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.

Grasp the impact of social media and knowledge management systems on organizational knowledge sharing.

Understand the requirements for making credible recommendations and forming valid conclusions based on research.

Appreciate the significance of avoiding biases and maintaining accuracy in the formulation of survey questions.

Differentiate between conclusions and recommendations in the context of a research report.

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Definitions:

Idle Capacity

The portion of a company's resources or production capability that is not currently being utilized to its full potential.

Activity-based Costing

Activity-based costing allocates overhead costs based on the specific activities that contribute to overhead in producing a product or service.

Processing Batches

Groups of items or units processed together in one operation to improve efficiency, often in manufacturing or data processing contexts.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of activities.