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.

---

Definitions:

Document Delivery

The process of supplying documents, such as journal articles or reports, to users, often via electronic means.

Document Publisher

A software or service that enables the creation and distribution of documents in various formats.

Probability Sampling

A sampling technique where each member of a population has a known and often equal chance of being selected.

Purposive Sampling

A non-random sampling technique where subjects are selected based on their unique characteristics or qualities relevant to the research.