Which of the Following Would Be Most Likely to Occur

question 7

Multiple Choice

Which of the following would be most likely to occur in the year after Congress, in an effort to increase tax revenue, passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales, other operating costs, and tax rates are not affected, and assume that the same depreciation method is used for tax and stockholder reporting purposes.

• A) companies' reported net incomes would decline.
• B) companies' net operating profits after taxes (nopat) would decline.
• C) companies' physical stocks of fixed assets would increase.
• D) companies' net cash flows would increase.
• E) companies' cash positions would decline.

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Definitions:

Spearman's Models

Theories developed by Charles Spearman, including the concept of a general intelligence factor known as "g" that underlies specific cognitive abilities.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.

Performance Tests

Assessments designed to evaluate an individual's abilities or skills through hands-on activities and practical tasks rather than through written questions.

Intellectual Abilities

The capacity to think abstractly, reason, understand complex ideas, learn quickly and from experience, and solve problems.