Which of the following statements is false?
A) While marginal and average tax rates often differ, it is the average tax rate that is relevant
for most ﬁnancial decisions.
B) The book value of an asset on the statement of ﬁnancial position can be very different
from its market value.
C) Net income as calculated from the statement of comprehensive income is not the net cash
ﬂow of the ﬁrm.
D) Non-cash items are expenses charged against revenues that do not directly affect cash
ﬂow.
E) The cash ﬂow identity states that all net cash ﬂows earned by the ﬁrm are distributed in
whole to its creditors and shareholders.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is false?
A) While marginal and average tax rates often differ, it is the average tax rate that is relevant
for most ﬁnancial decisions.
B) The book value of an asset on the statement of ﬁnancial position can be very different
from its market value.
C) Net income as calculated from the statement of comprehensive income is not the net cash
ﬂow of the ﬁrm.
D) Non-cash items are expenses charged against revenues that do not directly affect cash
ﬂow.
E) The cash ﬂow identity states that all net cash ﬂows earned by the ﬁrm are distributed in
whole to its creditors and shareholders.

Which of the Following Statements Is False