Changing Which of the Following Factors as Indicated Would Decrease

question 59

Multiple Choice

Changing which of the following factors as indicated would decrease the after-tax net cash flow of a project:

• A)Delaying the years in which inflows occur
• B)Delaying revenue recognition
• C)Increasing the discount rate
• D)All decrease cash flows
• E)None decrease cash flows

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Definitions:

Freight-in

The cost of shipping goods into a business, which is often included in the cost of inventory.

Cost of Goods

Cost of Goods refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Ending Inventory

At the close of an accounting period, the valuation of merchandise ready for sale is identified by summing up the initial inventory with buys and deducting the expense of goods sold.

Ending Inventory

The total value of all inventory a company has in stock at the end of an accounting period, which is used to calculate the cost of goods sold.