Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)We begin the capital budgeting process by determining the incremental earnings of a project.
• B)The marginal corporate tax rate is the tax rate the firm will pay on an incremental dollar of pre-tax income.
• C)Investments in plant,property,and equipment are directly listed as expense when calculating earnings.
• D)The opportunity cost of using a resource is the value it could have provided in its best alternative use.

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Definitions:

Balance Sheet

A report detailing a firm's assets, liabilities, and equity held by shareholders at a particular moment.

Inventory Levels

The quantity of goods and materials on hand at a particular time.

Controlling Costs

The process of managing and regulating expenses in order to improve profitability without compromising quality or performance.

Merchandise Inventory Turnover

A measure of how many times a company’s inventory is sold and replaced over a specific period.