If a Firm Pays Taxes, Which One of These Will

question 63

Multiple Choice

If a firm pays taxes, which one of these will reduce net income but increase cash flow?

• A)depreciation expense
• B)income taxes
• C)cash sales
• D)interest expense

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Definitions:

Urban

Relating to, characteristic of, or situated in a city or town.

Governmental Planning

The process by which governmental bodies set goals, establish priorities, and develop strategies to achieve desired outcomes for communities or nations.

Bootstrapping

refers to starting a business with minimal financial resources, relying on personal income and savings rather than seeking external investment.

Resource Acquisition

The process of identifying, securing, and managing the assets and inputs required for business operations and growth.