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:

Analytical Intelligence

The aspect of intelligence that involves the ability to analyze, evaluate, judge, compare, and contrast.

Architect

A professional who designs buildings and in many cases also supervises their construction.

Multiple Intelligences

A theory by Howard Gardner suggesting individuals possess various forms of intelligence, including linguistic, logical-mathematical, musical, spatial, bodily-kinesthetic, interpersonal, intrapersonal, and naturalistic.

Spatial Intelligence

The cognitive ability to visualize and manipulate objects and their spatial relations in the mind, important for solving spatial problems and navigating environments.