Which of the Following Statements Is CORRECT

question 55

Multiple Choice

Which of the following statements is CORRECT?

• A) Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.
• B) Corporations must use the same depreciation method (e.g., straight line or accelerated) for stockholder reporting and tax purposes.
• C) Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions.
• D) Under accelerated depreciation, higher depreciation charges occur in the early years, and this reduces the early cash flows and thus lowers a project's projected NPV.
• E) Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.

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Definitions:

Minimum Wage

The lowest legal wage that employers can pay workers, set by government policy with the aim to ensure a minimum standard of living for employees.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the economy should be like.

Minimum Wage

The lowest legal hourly wage that an employer can pay an employee.

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This term refers to the participation of individuals aged 13 to 19 in the labor force, including both those employed and seeking employment.