Which of the Following Does Not Represent Cash Outflows to a Firm

question 39

Multiple Choice

Which of the following does not represent cash outflows to a firm?

• A)Taxes
• B)Interest payments
• C)Dividends
• D)Depreciation

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Definitions:

Average Tax Rates

The ratio of the total amount of taxes paid to the total income, providing a measure of the tax burden.

Taxable Income

The portion of an individual’s or entity’s income that is subject to income tax after all deductions and exemptions.

Progressive

A system or policy where the level of contribution or effort increases with some measure of capacity, such as a progressive tax system where higher income earns pay a higher rate.

Proportional

Relating to or denoting a relationship where elements vary together at a constant rate and a change in one element results in a corresponding change in another.