Which of the Following Statements Is CORRECT

question 11

Multiple Choice

Which of the following statements is CORRECT?

• A) Since depreciation is not a cash expense, and since cash flows and not accounting income are the relevant input, depreciation plays no role in capital budgeting.
• B) Under current laws and regulations, corporations must use straight- line depreciation for all assets whose lives are 3 years or longer.
• C) If firms use accelerated depreciation, they will write off assets slower than they would under straight-line depreciation, and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• D) If they use accelerated depreciation, firms can write off assets faster than they could under straight-line depreciation, and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• E) If they use accelerated depreciation, firms can write off assets faster than they could under straight-line depreciation, and as a result projects' forecasted NPVs are normally higher than they would be if straight-line depreciation were required for tax purposes.

---

Definitions:

Divorcing Parents

Parents who are in the process of legally dissolving their marriage, which can impact family dynamics and children's well-being.

Remote Grandparents

Grandparents who are geographically distant from their grandchildren, potentially impacting the nature and extent of their relationship.

Companionate Grandparents

Grandparents who take active roles in their grandchildren's lives, often through regular visits and involvement in day-to-day activities.

Collectivist View

A cultural perspective valuing group goals and the common good over individual interests.