Which of the Following Statements Is FALSE

question 28

Multiple Choice

Which of the following statements is FALSE?

• A)Depreciation is not a cash expense paid by the firm.
• B)Net Working Capital = Cash + Inventory + Payables - Receivables.
• C)Since 1997,companies can "carry back" losses for two years and "carry forward" losses for 20 years.
• D)Earnings do not represent real profits.

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Definitions:

Optic Nerve

The nerve responsible for conducting visual data from the retina to the brain.

Visual Receptors

Cells located in the retina that are sensitive to light and play a key role in vision by converting light energy into neural signals.

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Trichromatic Theory

A theory of color vision proposing that the human eye has three types of receptors with different sensitivities to light wavelengths, responsible for the perception of color.