Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) Depreciation is a method used for accounting and tax purposes to allocate the original purchase cost of the asset over its life.
• B) Sometimes the firm explicitly forecasts free cash flow over a shorter horizon than the full horizon of the project or investment.
• C) Earnings include the cost of capital investments, but do not include non-cash charges, such as depreciation.
• D) Firms often report a different depreciation expense for accounting and for tax purposes.

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Definitions:

Idea

A concept or mental impression.

Fun

An experience of amusement or enjoyment.

Idea

An idea refers to a thought, conception, or notion that exists in the mind as a result of mental understanding, awareness, or activity.

Connective

Logical operators that join statements or propositions in logical expressions, such as "and", "or", and "not".