Which of the Following Statements Is FALSE

question 51

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 forecast 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:

Information Power

Information power is the access to and/or the control of information.

Positive Valence

A term used in psychology to describe the attractive or desirable nature of a stimulus, which influences a person’s motivation to pursue or engage in it.

Negative Valence

The negative emotional charge or undesirable assessment associated with a thought, event, or stimulus.

Money Orders

A payment order for a pre-specified amount of money, often used as a safer alternative to cash or personal checks.