When a New Piece of Equipment Is Purchased, Which of the Following

question 114

Multiple Choice

When a new piece of equipment is purchased, which of the following is considered a cash inflow?

• A)Cost savings
• B)Salvage value of the new equipment
• C)Additional revenue generated
• D)All of these answer choices are correct.

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Definitions:

Bank Reconciliation

A process that explains the difference between the bank balance shown in a company's bank statement and its financial records.

NSF Check

A check that cannot be processed due to insufficient funds in the account it is drawn on, commonly known as a bounced check.

Outstanding Checks

Checks that have been written and recorded in financial accounts but have not yet been cashed or cleared by the bank.

Bank Reconciliation

A process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time.