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:

Annual Withdrawals

The amount of money taken from an account or investment over the course of a year.

Interest

The expense associated with taking out a loan, usually represented as a yearly percent of the total loan value.

Years

A measurement of time equal to 365 days (or 366 days in a leap year), used to denote the duration or age of something.

Insurance Annuity

An insurance product that pays out income, typically used as a retirement strategy to provide individuals with a steady income in their post-work years.