Which of the Following Would Be Most Likely to Occur

question 80

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

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Definitions:

Structural Abnormalities

Physical changes or anomalies in the body's structures, often identified through medical imaging or physical examination.

Abnormal Behaviour

Patterns of emotion, thought, and action considered pathological (outside the normative range) by society or professional standards.

Seizure Disorders

A broad term covering any medical condition characterized by episodes of uncontrolled electrical activity in the brain, leading to changes in behavior, movements, feelings, or levels of consciousness.

Old Technology

Tools, systems, or methods that were once cutting-edge but are now surpassed by newer innovations.