Which of the Following Statements Is CORRECT

question 29

Multiple Choice

Which of the following statements is CORRECT?

• A) depreciation and amortization are not cash charges, so neither of them has an effect on a firm's reported profits.
• B) the more depreciation a firm reports, the higher its tax bill, other things held constant.
• C) people sometimes talk about the firm's net cash flow, which is shown as the lowest entry on the income statement, hence it is often called "the bottom line."
• D) depreciation reduces a firm's cash balance, so an increase in depreciation would normally lead to a reduction in the firm's net cash flow.
• E) net cash flow (ncf) is often defined as follows:net cash flow = net income + depreciation and amortization charges.

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Definitions:

Social-Cultural Perspective

An approach to psychology that emphasizes the influences of society and culture on behavior and mental processes.

Parenting Styles

Classified methodologies that parents use in raising their children, major styles include authoritarian, authoritative, permissive, and uninvolved.

Ethnic Groups

Social groups that share a common national or cultural tradition, often characterized by shared language, religion, and other cultural elements.

Evolutionary Perspective

An approach in psychology that explains human behavior and mental processes through the lens of adaptation and survival, influenced by the principles of natural selection.