Managing the Pattern in Which Cash Flows into the Firm

question 44

Multiple Choice

Managing the pattern in which cash flows into the firm in the form of revenues and out of the firm in the form of debt payments is referred to as which of the following?

• A)Income and expense management
• B)Financial control
• C)Cash-flow management
• D)Financial planning
• E)Asset allocation

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions, used to determine taxable income on an income tax return.

FMV

Fair Market Value, which is the price that an asset would sell for on the open market between a willing buyer and a willing seller.

Basis

The amount invested in a property for tax purposes, typically the cost of the property which is used to figure gain or loss on sale.

Taxable Gain

The portion of income or profit on which taxes must be paid, often related to investments or capital assets.