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Which of the following statements is FALSE? All other things being equal, firms that capitalize costs will: a. show smoother reported income than expensing

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Which of the following statements is FALSE? All other things being equal, firms that capitalize costs will: a. show smoother reported income than expensing firms. b. have lower leverage ratios than expensing firms. c. have lower profitability ratios in the early years than expensing firms. d. have higher operating cash flow and lower investment cash flow than expensing firms.

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