Cash Flows Are Affected by Financial Planning Decisions

question 23

Multiple Choice

Cash flows are affected by financial planning decisions. Which of the following is correct?

• A) Car payments you make are cash outflows.
• B) Investments you make in stock are cash inflows.
• C) Your routine monthly expenses are cash inflows.
• D) Your income is a cash outflow.

---

Definitions:

Prototype Matching

A cognitive process where new items are compared to an idealized or average category member to make recognition or classification decisions.

Gibson's Theory

A theory of perception that emphasizes the importance of environmental affordances and direct perception, proposed by psychologist James Gibson.

Directly Perceive

The process by which sensory information is immediately registered and understood without the need for conscious thought or interpretation.

Affordances

The opportunities or possibilities for action provided by a particular environment or object.