Which of the Following Would Be Most Likely to Occur

question 23

Multiple Choice

Which of the following would be most likely to occur in the year after Congress,in an effort to increase tax revenue,passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales,other operating costs,and tax rates are not affected,and assume that the same depreciation method is used for tax and stockholder reporting purposes.

• A) Companies' reported net incomes would decline.
• B) Companies' net operating profits after taxes (NOPAT)would decline.
• C) Companies' physical stocks of fixed assets would increase.
• D) Companies' net cash flows would increase.
• E) Companies' cash positions would decline.

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Definitions:

Informal Channels

Communication paths that are not officially sanctioned within an organization and often rely on personal relationships.

Organizational Communication

The process by which individuals within an organization share information and collaborate towards common goals.

E-mail

A method of sending messages and information electronically via a computer network.

Continuous Loop

A process or sequence of operations that repeats continuously without coming to an end.