Multiple-choice

Fill the following sentence with missing words: deductions reduce the that a company reports on its income statement and therefore reduce the that the firm must pay

Depreciation, expense, taxes

Income, taxes, expense

None of the answers

Depreciation, income, taxes

Tax, expense, income

A statement that contains Corporations planned inflows and outflows of cash that is used to estimate its short-term cash needs and requirements, is called:

Strategic financial plan

Statement of Cash Flows

None of the answers

Sales Forecast

Cash Budget (Cash Forecast)

The full cost of an asset that will be in use for several years generally cannot be deducted as an expense immediately. Instead, each year corporations are required to charge a portion of the costs of fixed assets against revenues. This portion of costs and the time over which allocation of historical cost is done, are called:

Deprecation and recovery period

Deprecation and depreciable life

Amortization and recovery period

None of the answers