Given a Financial Manager's Preference for Faster Receipt of Cash

question 140

Multiple Choice

Given a financial manager's preference for faster receipt of cash flows, ________.

• A) a longer depreciable life is preferred to a shorter one
• B) a shorter depreciable life is preferred to a longer one
• C) the manager is not concerned with depreciable life, because depreciation is a noncash expense
• D) the manager is not concerned with depreciable life, because once purchased, depreciation is considered a sunk cost

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Definitions:

Feudalism

A social and economic system in medieval Europe where land was held by nobles in exchange for military service, and labor was provided by peasants who lived on their land.

Capitalism

Capitalism is an economic system characterized by private ownership of the means of production, profit-driven enterprise, and the market mechanism of supply and demand determining production and investment.

Economic Relations

Refers to the interactions and transactions among individuals, businesses, and governments concerning the production, distribution, and consumption of goods and services.

Capitalist System

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.