Free points if you read this and pick the answer I tell you is correct. First the question: is it possible that cash flow generated by a company might differ from its net income because of the way depreciation is expensed? Could this be the case for many reasons: including the way depreciation rules affect taxable income and business taxes and also because the depreciation might not correspond to actual spending to maintain plant and equipment. That is why many people do valuation based on cash flow or free cash flow $($rather than net income$)$ in order to be more precise. So you can pick true, and I only left out these details $($from most of our problems$/$examples$)$ to avoid extra complications.$$

Group of answer choices

True

False