Which of the Following Statements Is True

question 47

Multiple Choice

Which of the following statements is true?

• A) The calculation of free cash flow does not include the impact of income taxes.
• B) Accounting earnings are an unreliable measure of the costs and benefits of a project.
• C) The idea that we can evaluate the cash flows from a project independently of the cash flows for the firm is known as the incremental principle.
• D) Depreciation expense should not be included in the calculation of incremental net operating profits after-tax.

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Definitions:

Representative Sample

A subset of a population carefully chosen to accurately reflect the characteristics of the larger group for the purposes of research or analysis.

Probability Sample

A sampling method in which every member of the population has a known and non-zero chance of being selected for the study, allowing for generalized conclusions.

Voluntary Response Sample

A sampling method where participants self-select to be a part of a study, often leading to biased results due to the non-random nature of the sample choice.

Researcher Bias

Researcher bias refers to a systematic error introduced into sampling or testing by selecting or encouraging one outcome or answer over others, which can affect the validity and reliability of research findings.