Which of the Following Statements Is FALSE

question 28

Multiple Choice

Which of the following statements is FALSE?

• A)Depreciation is not a cash expense paid by the firm.
• B)Net Working Capital = Cash + Inventory + Payables - Receivables.
• C)Since 1997,companies can "carry back" losses for two years and "carry forward" losses for 20 years.
• D)Earnings do not represent real profits.

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Definitions:

High Heat Capacity

The property of a substance that allows it to absorb a considerable amount of heat without undergoing a significant change in temperature.

Carbonic Acid

A weak acid formed in solution when carbon dioxide dissolves in water.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.

Baking Soda

A chemical compound also known as sodium bicarbonate, used in baking as a leavening agent and for cleaning.