Which of the Following Are Examples of an Incremental Cash

question 40

Multiple Choice

Which of the following are examples of an incremental cash flow?
I.an increase in trade receivables
II.a decrease in net working capital
III.an increase in taxes
IV.a decrease in the cost of goods sold

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

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Definitions:

Sales Forecasting

The process of estimating future sales volumes based on historical sales data, market analysis, and other factors.

Economic Trends

Patterns or movements in economic indicators, such as GDP growth, unemployment rates, or inflation over time, that help in forecasting future economic activity.

Strategic Planning

Strategic planning involves defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy, considering long-term growth and success.

Financial Statement Forecasting

The process of projecting future financial outcomes by analyzing historical data and current trends.