Which of the Following Statements Is FALSE

question 51

Multiple Choice

Which of the following statements is FALSE?

• A)Depreciation is a method used for accounting and tax purposes to allocate the original purchase cost of the asset over its life.
• B)Sometimes the firm explicitly forecast free cash flow over a shorter horizon than the full horizon of the project or investment.
• C)Earnings include the cost of capital investments,but do not include non-cash charges,such as depreciation.
• D)Firms often report a different depreciation expense for accounting and for tax purposes.

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Definitions:

Binder

A temporary insurance contract that provides coverage until a formal, permanent policy is issued.

Trustworthy Insurance

Insurance services provided by a company that is reliable and deserving of trust, emphasizing fair practices and clear policies.

Initial Premium

The first payment made by the insured to the insurer to initiate an insurance policy coverage.

Life Insurance

A contract between an insurer and a policyholder, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.