Which of the Following Statements Is Correct for a Firm

question 95

Multiple Choice

Which of the following statements is correct for a firm in which depreciation expense exceeds EBIT (Operating Income) ? The firm:

• A)will have a net loss.
• B)will have no income-tax liability.
• C)needs to lower its interest expense.
• D)can still have a positive net income.

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Definitions:

Scoliosis

A medical condition characterized by an abnormal lateral curvature of the spine.

Lateral Curvature

Lateral curvature, often referring to scoliosis, is a condition characterized by a sideways curvature of the spine that deviates from the normal straight vertical alignment.

Menisci

Curved fibrocartilaginous structures in the knee joint that serve to distribute weight and reduce friction during movement.

Cartilage

A flexible connective tissue found in various forms in the body, including joints, ear structure, and the nose.