The Predictability of the Project's Revenue Stream Is Essential in Securing

question 53

Multiple Choice

The predictability of the project's revenue stream is essential in securing project financing. Which of the following is NOT a typical contract provisions that are intended to assure adequate cash flow?

• A) quantity and quality of the project's output
• B) a pricing formula
• C) circumstances that permit changes in the contract
• D) fronting loan

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Definitions:

Owner's Capital Account

A financial record that represents the owner's invested capital plus the total earnings minus the withdrawals made by the owner.

Year-End Balance

The final amount of money in an account at the end of a financial year, after all transactions and adjustments have been accounted for.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as paper, pencils, and cleaning materials.