Which of the Following Statements Is CORRECT

question 43

Multiple Choice

Which of the following statements is CORRECT?

• A) Depreciation and amortization are not cash charges, so neither of them has an effect on a firm's reported profits.
• B) The more depreciation a firm reports, the higher its tax bill, other things held constant.
• C) People sometimes talk about the firm's net cash flow, which is shown as the lowest entry on the income statement, hence it is often called "the bottom line."
• D) Depreciation reduces a firm's cash balance, so an increase in depreciation would normally lead to a reduction in the firm's net cash flow.
• E) Net cash flow (NCF)is often defined as follows:
• Net Cash Flow = Net Income + Depreciation and Amortization Charges.

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Definitions:

Structures of Society

The complex framework of social institutions, organizations, norms, and values that shape social interactions and the functioning of a society.

Anomie

A condition of society in which there is a breakdown of social norms and values, leading to a state of normlessness.

Cultural Standards

Norms and values that are widely held and practiced by a culture, guiding behavior and social expectations.

Structural Means

The arrangements or mechanisms within a society that facilitate the accomplishment of societal norms, goals, or purposes.