Which of the Following Statements Is Correct for a Firm

question 48

Multiple Choice

Which of the following statements is correct for a firm in which depreciation expense exceeds EBIT? 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:

Cytochrome Molecules

Proteins found within cells that play key roles in electron transport and energy production within mitochondria.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions and couples this electron transfer with the transfer of protons (H+ ions) across a membrane.

Cristae

Short, fingerlike projections formed by the folding of the inner membrane of mitochondria.

Mitochondria

Organelles within cells that produce energy through the process of cellular respiration, often referred to as the powerhouses of the cell.