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IMANET Exam CMA Topic 2 Question 29 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 29
Topic #: 2
[All Certified Management Accountant Questions]

Which one of the following statements concerning cash flow determination for capital budgeting purposes is not correct?

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Suggested Answer: B

Tax depreciation is relevant to cash flow analysis because it affects the amount of income taxes that must be paid. However, book depreciation is not relevant because it does not affect the amount of cash generated by an investment.


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