Which of the Following Statements Generally Apply to the Cash

question 105

Multiple Choice

Which of the following statements generally apply to the cash flows of a financing type project?
I.nonconventional cash flows
II.cash outflows exceed cash inflows prior to any time value adjustments
III.cash for services rendered is received prior to the cash that is spent providing the services
IV.the total of all cash flows must equal zero on an unadjusted basis

• A)I only
• B)I and III only
• C)II and IV only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Unearned Revenue

Money received by an entity for goods or services yet to be delivered or rendered, recognized as a liability until the obligation is fulfilled.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before the preparation of financial statements.

Unbilled Consulting Revenue

Unbilled consulting revenue refers to earnings from consulting services that have been delivered but not yet invoiced to the client.

Depreciation

The process of methodically dividing the expense of a physical asset over its estimated useful life.