Which of the Following Questions Is False

question 57

Multiple Choice

Which of the following questions 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 carry backs 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.