Which of the Following Statements Is CORRECT

question 35

Multiple Choice

Which of the following statements is CORRECT?

• A) One way to increase EVA is to achieve the same level of operating income but with more investor-supplied capital.
• B) If a firm reports positive net income, its EVA must also be
• Positive.
• C) One drawback of EVA as a performance measure is that it mistakenly
• Assumes that equity capital is free.
• D) One way to increase EVA is to generate the same level of operating
• Income but with less investor-supplied capital.
• E) Actions that increase reported net income will always increase net cash flow.

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Definitions:

Ideal Budget

A financial plan that optimally allocates income towards expenses, savings, and debt repayment, according to personal or family goals.

Types of Expenses

Various categories of costs incurred by individuals or organizations, including fixed, variable, operational, and capital expenses.

Income

Money received, especially on a regular basis, for work or through investments.

Blog Creation

The process of designing and publishing a blog, a digital platform for writing, sharing ideas, experiences, or information online.