All Benefits Expected from a Proposed Project Must Be Measured

question 49

True/False

All benefits expected from a proposed project must be measured on a cash flow basis which may be found by adding any non-cash charges deducted as an expense on the firm's income statement back to net profits after taxes.

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Definitions:

Cash Withdrawals

The act of taking money out of an account, decreasing the account balance.

Assets

Resources owned or controlled by a company or individual with the expectation that they will provide future benefit.

Accounting Equation

A fundamental financial principle representing the relationship between a company's assets, liabilities, and shareholder's equity: Assets = Liabilities + Equity.

Increase Assets

An augmentation in the total value or amount of economic resources owned or controlled by an entity.