To approximate net annual cash flow, depreciation is
A. Added back to net income because it is an inflow of cash
B. Subtracted from net income because it is an expense
C. Subtracted from net income because it is an outflow of cash
D. Added back to net income because it is not an outflow of cash
Answer: D. Added back to net income because it is not an outflow of cash
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England's colonial policy changed dramatically following the French and Indian War. All of the following statements describe factors that contributed to this change in policy except
a. Following the war, property taxes doubled in England in order to finance the large war debt. b. Wealthy New England merchants asked the Crown to exercise more authority over colonial affairs. c. Colonists had actively traded with England's enemies during the war. d. English military leaders realized that a continuing military presence would be necessary to protect colonial borders.
When can a seller's investment in reducing transaction cost increase the price of the product to customers but still leave them better off?