Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) We begin the capital budgeting process by determining the incremental earnings of a project.
• B) The marginal corporate tax rate is the tax rate the firm will pay on an incremental dollar of pre-tax income.
• C) Investments in plant, property, and equipment are directly listed as expense when calculating earnings.
• D) The opportunity cost of using a resource is the value it could have provided in its best alternative use.

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Definitions:

Automobile

A wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Provincial Personal Property

Assets or belongings that are considered movable and are within the jurisdiction of a specific province or region.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.