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:

Federal Power

The authority and capabilities possessed by the federal government, as distinguished from the powers held by state or local governments.

Louisiana

A state located in the southeastern region of the United States, known for its diverse culture, particularly its Creole and Cajun influences, and as the site of New Orleans, a major cultural and economic hub.

Embargo Act

Attempt in 1807 to exert economic pressure by prohibiting all exports from the United States, instead of waging war in reaction to continued British impressment of American sailors; smugglers easily circumvented the embargo, and it was repealed two years later.

Sedition Act

Refers to several historical laws in the United States that made it illegal to speak or act against the government, notably the 1918 act during World War I.