Examveda
Examveda

Cash flows that should be considered for decision in hand are classified as

A. relevant cash flows

B. irrelevant cash flows

C. marginal cash flows

D. transaction cash flows

Answer: Option A

Solution(By Examveda Team)

Cash flows that should be considered for decision in hand are classified as relevant cash flows. It states that they must be cash flows that occur in the future and are incremental. While on the face of it obvious, only costs or revenues that give rise to a cash flow should be included.

This Question Belongs to Commerce >> Financial Management

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