Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A) The degree of pretax cash flow operating leverage remains same for any level of revenue.
• B) The higher the proportion of fixed costs to variable costs in a project, the greater the sensitivity of pre-tax operating cash flows to changes in revenue.
• C) Depreciation and amortization are deducted to get pretax operating cash flows.
• D) The lower the proportion of fixed costs to variable costs in a project, the more pre-tax operating cash flows will vary as revenue varies.

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Definitions:

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where digestion of food occurs.

Presynaptic Terminals

The ends of axons where neurotransmitters are stored before being released across the synaptic cleft to transmit nerve impulses.

Axons

Long, threadlike extensions of a nerve cell that transmit electrical impulses away from the neuron's cell body.

Sensory Division

Part of the nervous system responsible for receiving and processing sensory information from the environment.