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Which of the statements below is considered incorrect regarding the relationship betweem depreciation and cash? O A. Depreciation is an allocation of the cost of
Which of the statements below is considered incorrect regarding the relationship betweem depreciation and cash? O A. Depreciation is an allocation of the cost of an asset to the periods in which the asset is used. OB. Accumulated depreciation is not a pile of cash walting to be used. OC. Recording depreciation expense provides a means of setting aside cash for the replacement of an asset OD. Depreciation does not generate cash. From the point of view of a company that issued bonds, debt is often a more attractive way of financing long-term investments for which of the following reasons: 1. Debt is less risky than common shares. 2. Bonds are not tradeable on organized exchange markets. 3. Interest paymehts are tax deductible and dividend payments are not 4. Ownership rights are kept by the present shareholders. OA 3 and 4 OB. 1 and 3 OC. 2 and 4 OD 1, 3 and 4 Financial ratios, which assess the profitability of a company, include all of the following except the OA Gross profit percentage OB Dividend yield ratio OC. Net profit margin ratio OD. Return on equity O E Earnings per share
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