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Which of the following statements is incorrect? The main difference between the finance balance...

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Finance

Which of the following statements is incorrect?

The main difference between the finance balance sheet and the accounting balance sheet is that the finance balance sheet is based on market values rather than book values.

The value of the cash flows that the assets of a firm are expected to generate is always greater than the value of the cash flows claimed by both the equity and debt investors.

Debt with a maturity of more than one year can typically be viewed as permanent debt because firms often borrow the money to pay off this debt when it matures.

All the answers are correct except one.

Left-hand side of the accounting balance sheet shows the book value of the firms assets, based on historical costs.

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