Which of the Following Statements Is False

question 7

Multiple Choice

Which of the following statements is false?

• A) Depreciation is not a cash expense paid by the firm.
• B) Net Working Capital = Cash + Inventory + Payables - Receivables.
• C) Since 1997, companies can "carry back" losses for two years and "carry forward" losses for 20 years.
• D) Earnings do not represent real profits.

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Definitions:

Economic Stimulus

Government policy or monetary intervention aimed at promoting economic growth or preventing or reversing a recession by boosting spending and investment.

Public Works Projects

Government-funded projects to build public facilities like roads, schools, and water treatment plants.

National Debt

The total amount of money owed by a country's government to creditors, including domestic and foreign entities.

Government Deficit

Occurs when a government's expenditures exceed its revenues in a given fiscal period, leading to borrowing or using saved reserves.