Which of the Following Is NOT a Relevant Cash Flow

question 61

Multiple Choice

Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project?

• A) Changes in net operating working capital.
• B) Shipping and installation costs for machinery acquired.
• C) Cannibalization effects.
• D) Opportunity costs.
• E) Sunk costs that have been expensed for tax purposes.

Understand and apply the concept of inventory shrinkage and its adjustment in accounting records.

Learn how to prepare and understand the components of a single-step income statement and a statement of owner's equity.

Grasp the differentiation between periodic and perpetual inventory systems and their impact on accounting records.

Acquire the ability to arrange selected accounts in order of appearance for companies using a multiple-step income statement.

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Definitions:

Seligman

A psychologist known for his work on positive psychology, learned helplessness, and well-being.

Optimistic

Having a positive outlook or expectation about the future, believing that good things will happen.

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.

Learned Helplessness

A situation where someone feels unable to control their life, due to trauma or repeated failures.