Initial Cash Flows and Subsequent Operating Cash Flows for a Project

question 101

Multiple Choice

Initial cash flows and subsequent operating cash flows for a project are sometimes referred to as

• A) necessary cash flows.
• B) relevant cash flows.
• C) consistent cash flows.
• D) ordinary cash flows.

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Definitions:

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.

Inventory Records

Documentation that tracks the quantities, locations, and statuses of products a company has in stock.

Current Costs

The costs or expenses associated with the acquisition, production, or maintenance of assets and services at present market prices.

Freight Charges

Fees associated with the transportation of goods over distance, typically paid by the shipper or receiver.