All Else Equal,a Project's Operating Cash Flow Will Increase When

question 60

Multiple Choice

All else equal,a project's operating cash flow will increase when the

• A)net working capital requirement increases.
• B)sales projections are lowered.
• C)interest expense is lowered.
• D)depreciation expense increases.
• E)earnings before interest and taxes decreases.

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Definitions:

Closing Process

The closing process involves finalizing accounts at the end of an accounting period, transferring net income and dividend information to retained earnings, and preparing the accounts for the next period.

Owner's Capital

The total value of assets contributed by the owner of a business plus the retained earnings.

Owner's Drawings

Withdrawals of a business's cash or other assets by the owner for personal use.

Expense Accounts

Accounts used to record business expenses, which reduce net income in the profit and loss statement.