Which of the Following Statements Is False

question 53

Multiple Choice

Which of the following statements is false?

• A) The EVA method is conceptually valid but due to the disconnect it has between accrual-based accounting and economic value coupled with increased computational complexity,it is not the most popular method for growth planning.
• B) Firms generally assumed that if ROI is greater than the firm's cost of capital then shareholder value will be created.
• C) One of the typical growth targets is depreciation.
• D) The popular growth targets tend to rely on accounting data and are typically measured on an annual basis.

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Definitions:

Financial Statement

Reports that summarize a company's financial performance, status, and cash flows over a specified period.

Permanent/Temporary

A classification that distinguishes between actions or objects that are intended to last indefinitely (permanent) and those expected to change or conclude after a certain period (temporary).

Normal Balance

The side of the accounting equation (debit or credit) where increases in the account are recorded.

Financial Statement

A written report which quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.