Avoidable Cash Flows Are

question 31

Multiple Choice

Avoidable cash flows are:

• A) Usually relevant to a decision
• B) Cash flows that are incurred no matter which action is taken
• C) Ignored in decision-making
• D) Are the same as irrelevant cash flows

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Definitions:

Retained Earnings

The portion of net income that is kept by the company rather than distributed to shareholders in the form of dividends to be reinvested in the business or pay off debt.

Financial Position Accounts

Accounts that provide information about the resources, obligations, and net worth of an entity at a specific point in time.

Statement Of Income Accounts

A financial report that shows a company's revenues, expenses, and net income over a specific period, highlighting its profitability.

Accounting Cycle

Describes the systematic process of recording and processing all financial transactions of a company, from when the transaction occurs to its representation in the financial statements.