Why are the estimated benefits from a project are expressed as cash flows instead of income flows?
A. It is cash, not accounting income, that is central to the firm's capital budgeting decision
B. It is simple to calculate cash flows than income flows
C. Both A and B
D. None of the above
Answer: Option A
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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