In the NPV Method,the Cash Outflow for the Purchase of Equipment

question 53

True/False

In the NPV method,the cash outflow for the purchase of equipment is an example of an operating cash flow.

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Definitions:

Eligibility Requirements

Criteria that must be met in order to qualify for a specific program, service, or status.

Nonexchange Transactions

Transactions where an entity receives value without directly giving or promising equivalent value in exchange.

Reimbursement

Compensation paid to someone for out-of-pocket expenses they have incurred.

Internal Service Fund

A proprietary fund in governmental accounting used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis.