As of 2012, which one of the following statements concerning corporate income taxes is correct?

Which one of the following statements related to an income statement is correct? 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. Refer to sections 2.2 and 2.3

33.

Which one of the following statements related to taxes is correct?    A.  The marginal tax rate must be equal to or lower than the average tax rate for a firm. B.  The tax for a firm is computed by multiplying the firm's current marginal tax rate times the taxable income. C.  Additional income is taxed at a firm's average tax rate. D.  Given the corporate tax structure in 2012, the highest marginal tax rate is equal to the highest average tax rate. E.  The marginal tax rate for a firm can be either higher than or the same as the average tax rate. Refer to section 2.3

34.

As of 2012, which one of the following statements concerning corporate income taxes is correct?    A.  The largest corporations have an average tax rate of 39 percent. B.  The lowest marginal rate is 25 percent. C.  A firm's tax is computed on an incremental basis. D.  A firm's marginal tax rate will generally be lower than its average tax rate once the firm's income exceeds $50,000. E.  When analyzing a new project, the average tax rate should be used. Refer to section 2.3

35.

Depreciation:    A.  reduces both taxes and net income. B.  increases the net fixed assets as shown on the balance sheet. C.  reduces both the net fixed assets and the costs of a firm. D.  is a noncash expense which increases the net income. E.  decreases net fixed assets, net income, and operating cash flows. Refer to sections 2.2 and 2.4

36.

Which one of the following statements related to an income statement is correct?    A.  Interest expense increases the amount of tax due. B.  Depreciation does not affect taxes since it is a non-cash expense. C.  Net income is distributed to dividends and paid-in surplus. D.  Taxes reduce both net income and operating cash flow. E.  Interest expense is included in operating cash flow. Refer to sections 2.2 and 2.4