Historical Costs Are Helpful

question 210

Multiple Choice

Historical costs are helpful:

• A)for making future predictions
• B)for decision making
• C)because they are quantitative
• D)None of these answers is correct.

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Definitions:

Expected Return

The anticipated average return of an investment over a specified period, based on historical data or statistical analysis.

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, indicating the liquidity available for expansion or dividend distribution.

Corporate Tax Rate

The percentage of a corporation's income that is seized by the government as tax.

Depreciation

The reduction in value of an asset over time, particularly in respect of wear and tear.