Answer the following statements true (T) or false (F)
1) All benefits expected from a proposed project must be measured on a cash flow basis which may be found by adding any non-cash charges deducted as an expense on a firm's income statement back to net profits after taxes
2) In computing after-tax operating cash flows, both operating costs and financing costs must be deducted from any cash inflows received.
3) In computing after-tax operating cash flows, only operating costs but not financing costs must be deducted from any cash inflows received.
4) In evaluating a proposed project, incremental operating cash inflows are relevant cash flows.
1) TRUE
2) FALSE
3) TRUE
4) TRUE
You might also like to view...
Which is an example of a merchandising business?
a. a car manufacturer; b. a dentist; c. a toy factory; d. a pharmacy; e. a travel agency
Changes in accounting estimates are:
A. Statement of cash flow items. B. Considered accounting errors. C. Accounted for with a cumulative "catch-up" adjustment. D. Reported as prior period adjustments. E. Accounted for in current and future periods.
Transactions are not entered directly into ledger accounts because:
a. It is too difficult to identify individual transactions. b. Finding errors is difficult. c. Both of these are correct. d. Neither of these are correct.
What reason did Jimmy Dunne III of Sandler O'Neill give for dedicating his time and resources to helping the families of his employees who were killed in the World Trade Center attacks?
a. There was a clause in their employment contract that required it. b. He wanted the attention his generosity would bring. c. His son will also be judged by how Jimmy Dunne responded to his employees' families' needs. d. None of the above