Which of the Following Is the Correct Method of Determining

question 35

Multiple Choice

Which of the following is the correct method of determining discretionary financing needed (DFN) ?

• A) Projected change in assets, divided by projected change in liabilities, plus projected change in owner's equity
• B) Projected change in assets, times projected change in owner's equity, minus projected change in liabilities
• C) Projected change in owner's equity, minus projected change in liabilities, plus projected change in assets
• D) Projected change in assets, minus projected change in liabilities, minus projected change in owner's equity

---

Definitions:

Reciprocal Services

Services exchanged between departments within an organization or between companies without direct monetary payment, often valued and accounted for through internal mechanisms.

ABC

An abbreviation for Activity-Based Costing, a method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Direct Method

A cash flow statement preparation method that shows the specific sources of operating cash receipts and payments, contrasting with the indirect method.

ABC

Activity-Based Costing, an accounting method that assigns costs to products and services based on the activities and resources used in their creation and delivery.