Which of the Following Statements Is False

question 13

Multiple Choice

Which of the following statements is false?

• A)Cash flow should be calculated on an after-tax basis.
• B)The tax cost to a business should not be regarded as a cost of doing business.
• C)Income tax should be treated as a controllable cost.
• D)The value of an enterprise should not be based on pre-tax cash flow.

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Definitions:

Financial Manager

A professional responsible for managing the financial health of an organization by overseeing investment activities and planning for the long-term financial strategy.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and conduct business.

Financial Manager

A person responsible for managing an organization’s financial activities, including planning, investments, and managing financial resources.

Capital Structure

The combination of borrowing and ownership funding a business employs to support its activities and expansion.