Foundations and Evolutions, 7E, by Michael R. A Higher is the probability that the firm will encounter financial distress B Lower is the amount of debt incurred C Less debt a firm has per dollar of total assets D Higher is the number of outstanding shares of stock E Lower is the balance in accounts payable 25 The book value of a firm is: Assume accrual accounting is used A The addition to retained earnings is equal to net income plus dividends paid B Credit sales are recorded on the income statement when the cash from the sale is collected C The labor costs for producing a product are expensed when the product is sold D Interest is a non-cash expense E Depreciation increases the marginal tax rate 32 Which one of the following statements related to taxes is correct.
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