Which not correct with respect to understanding big picture

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Problem 1: Which of the following is NOT correct with respect to understanding the "Big Picture" for this class?

A) The matching principle allows management to align expenses with the revenues they help generate during each reporting period.

B) "Earned capital" refers to both retained earnings and accumulated other comprehensive income.

C) Liabilities or "nonowner financing" should be discussed in terms of whether they are non-interest bearing or interest-bearing.

D) All statements are correct.

E) A firm achieves success and creates value for its shareholders when the return on invested capital exceeds the weighted average cost of capital.

F) The "WACC" represents the cost of both debt and equity for the firm.

G) At some point in time, management of firms will make a determination as to whether a portion of earnings generated should be paid out in dividends or retained by the firm

Reference no: EM132736643

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