Which of the Following Statements Is CORRECT

question 29

Multiple Choice

Which of the following statements is CORRECT?

• A) The current cash flow from existing assets is highly relevant to investors.However,since the value of the firm depends primarily upon its growth opportunities,accounting net income projections from those opportunities are the only relevant future flows with which investors are concerned.
• B) Two metrics that are used to measure a company's financial performance are net income and free cash flow.Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles.Finance people generally put at least as much weight on free cash flows as they do on net income.
• C) To estimate the net cash provided by operations,depreciation must be subtracted from net income because depreciation is a non-cash charge that has been added to revenue.
• D) Interest paid by a corporation is a tax deduction for the paying corporation,but dividends paid are not deductible.This treatment,other things held constant,tends to discourage the use of debt financing by corporations.
• E) If Congress changed depreciation allowances so that companies had to report higher depreciation levels for tax purposes in 2018,companies would have lower free cash flows in 2018.

Understand the significance of offering apologies and explanations in business communications.

Learn to view challenges as opportunities for organizational improvement.

Understand the role of a buffer in preparing the recipient for bad news.

Understand the structure and functions of the skin's epidermal and dermal layers.

---

Definitions:

Sample Space

The complete set of all possible outcomes of a random experiment or event.

Driver's Exam

A test designed to evaluate an individual's knowledge and skills in driving to determine their eligibility for a driver's license.

Probability

A quantification of the chances of a given event happening, with its value lying anywhere from 0 to 1.

Simple Events

In probability, an event that cannot be broken down further into simpler components.