Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A) Net Working Capital = Current Assets - Current Liabilities.
• B) Because depreciation is not a cash flow, we do not include it in the cash flow forecast.
• C) Tax loss carrybacks allow corporations to take losses during the current year and use them to offset income in future years.
• D) Earnings are an accounting measure of firm performance.

---

Definitions:

Empirical Research

Research based on observed and measured phenomena, aiming to obtain knowledge through empirical evidence.

Process Approach

A methodology in management and quality improvement that views activities as collections of interconnected processes, focusing on optimizing these processes to enhance performance.

Wide-Ranging

Covering a broad scope or variety of topics, areas, or subjects, often indicating an extensive or comprehensive reach.

Interactive Process

An ongoing method involving two or more parties that influence each other through action and reaction.