The finance balance sheet is based on market values

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Reference no: EM131502832

1. It is possible for a firm to have one depreciation schedule for tax purposes and another for financial reporting purposes.

True

False

2. Total variable costs for a firm do not vary directly with the number of units sold.

True

False

3. Taxes do not enter into the equation for the degree of cash flow of operating leverage because both fixed costs and pretax operating cash flows are measured on a pretax basis.

True

False

4. The finance balance sheet is based on market values, just like the accounting balance sheet.

True

False

Reference no: EM131502832

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