What Would Be Most Likely to Occur in the Year

question 68

Multiple Choice

What would be most likely to occur in the year when companies have to depreciate equipment over longer lives? Assume that sales,other operating costs,and tax rates are not affected,and the same depreciation method is used for tax and shareholder reporting purposes.

• A)Companies' NOPAT would decline.
• B)Companies' physical stocks of fixed assets would increase.
• C)Companies' net cash flows would increase.
• D)Companies' cash positions would decline.

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Definitions:

Thurstone Scales

A psychometric scale developed by L. L. Thurstone, used to measure attitudes by asking respondents to agree or disagree with a series of statements, each weighted according to their position on an agree-disagree continuum.

Likert Scale

A Likert scale is a psychometric scale commonly involved in research that employs questionnaires. It is the most widely used approach for scaling responses in survey research, such that the term is often used interchangeably with rating scale, even though the two are not synonymous.

Aptitude

A natural ability to do something or to learn something.

Disrespect

The act or feeling of showing a lack of respect or courtesy towards someone or something.