Which of the Following Statements Is False

question 7

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:

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sampling Distribution

The distribution of a statistic (like the mean) that would result from taking a large number of samples from a population.

Sample Size

The number of observations or data points in a sample used to estimate characteristics of a population.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of values in a population.