Is the Predicted Future Costs and Revenues That Will Differ

question 65

Multiple Choice

is the predicted future costs and revenues that will differ among alternative courses of action.

• A) Historical information
• B) Predictable information
• C) Sunk costs and revenues
• D) Relevant information

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Definitions:

Noncash Investing

Investment activities that do not involve direct cash transactions, such as acquiring assets through issuance of stock or exchange of other assets.

Financing Activity

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).

Net Income

The sum a company retains as earnings after deducting expenses and taxes from its turnover.

Noncash Charges

Expenses recorded in accounting but do not involve any actual cash flow, such as depreciation or amortization.