Which of the Following Statements Is False

question 24

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 forecasts 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:

Tissue Fluids

Fluids that surround the cells of tissues, providing nutrients and removing waste, also known as interstitial fluid.

Epidermis

(1) An outer layer of cells that covers the body of plants and functions primarily for protection. (2) The outer layer of vertebrate skin.

Nematode

Unsegmented worms of the phylum Nematoda, including both parasitic and free-living species that can be found in various environments.

Ectoderm

The outer germ layer of the early embryo; gives rise to the skin and nervous system. Compare with mesoderm and endoderm.