Which of the Following Statements Is CORRECT

question 28

Multiple Choice

Which of the following statements is CORRECT?

• A) Since depreciation is not a cash expense,and since cash flows and not accounting income are the relevant input,depreciation plays no role in capital budgeting.
• B) Under current laws and regulations,corporations must use straight-line depreciation for all assets whose lives are 3 years or longer.
• C) If they use accelerated depreciation,firms will write off assets slower than they would under straight-line depreciation,and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• D) If they use accelerated depreciation,firms can write off assets faster than they could under straight-line depreciation,and as a result projects' forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes.
• E) If they use accelerated depreciation,firms can write off assets faster than they could under straight-line depreciation,and as a result projects' forecasted NPVs are normally higher than they would be if straight-line depreciation were required for tax purposes.

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Definitions:

Accurately Recalled Words

Words that are remembered and reported precisely as they were originally presented.

False Memories

Recollections of events that did not actually happen or that are distorted versions of what happened, often studied in the context of eyewitness testimony and memory reliability.

Erroneous Reconstructions

Incorrectly pieced together memories or perceptions, often resulting from misinformation or memory distortions.

Schemata Representations

The mental structures that individuals use to organize and understand information.