Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements 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 carrybacks 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.

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Definitions:

Lanham Act

The primary federal trademark statute in the United States, governing trademarks, service marks, and unfair competition, enacted in 1946.

Tying Arrangement

A business practice in which a seller requires buyers to purchase an additional, often unrelated, product or service as a condition of buying a desired product.

Exclusive Dealing

A practice where a supplier prohibits its customers from buying goods or services from its competitors.

Federal Trademark Dilution Act

A United States law that aims to protect famous trademarks from uses that dilute their distinctiveness, even without showing confusion or competition.