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.

---

Definitions:

Buyer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay.

Seller Surplus

The difference between the amount sellers are willing to accept for a good or service and the amount they actually receive.

Unconsummated Transaction

A deal or negotiation that has been discussed or agreed upon in principle but has not been finalized or completed.

Sales Tax

a tax imposed on sales of goods and services, typically calculated as a percentage of the purchase price.