问题
单项选择题
For firms that expense rather than capitalize costs, which of the following statements is least correct （）
A. Higher debt/equity and debt/assets will occur because of lower asset and equity levels.
B. Net cash flows are the same regardless of which method is used.
C. Lower ROA and ROE will occur because of higher asset and equity levels in the early years
答案
参考答案：C
解析：
Firms that expense costs versus capitalize costs, they will have a lower ROE and ROA in early years because of lower profits and not due to higher assets and equity levels ( actually the assets and equity are lower due to expensing the costs).