The Actual Cost Method Is a More-Flexible Way to Compute

question 69

True/False

The actual cost method is a more-flexible way to compute the auto expense deduction and often results in a larger tax savings.

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Definitions:

Net Cash

The difference between a company's total cash inflows and outflows within a period.

Cash Dividends

Payments made by a corporation to its shareholders from its profits.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets.

Net Income

The profit of a company after all expenses and taxes have been subtracted from revenue.