• 2022-06-06
    Which of the following statements is FALSE?
    A: Depreciation is a method used for accounting and tax purposes to allocate the original purchase cost of the asset over its life.
    B: Sometimes the firm explicitly forecast free cash flow over a shorter horizon than the full horizon of the project or investment.
    C: Earnings include the cost of capital investments, but do not include non-cash charges, such as depreciation.
    D: Firms often report a different depreciation expense for accounting and for tax purposes.
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