If an Equipment Replacement Decision Would Not Affect Revenue, Its

question 74

Multiple Choice

If an equipment replacement decision would not affect revenue, its benefits could still be measured by analyzing its

• A) cost savings.
• B) net cash flows.
• C) effect on net income.
• D) net cash outflows.

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Definitions:

Chart of Accounts

An organizational tool that lists all the accounts in a company's general ledger, categorizing financial transactions into specific classes for reporting and analysis purposes.

Framework

A basic conceptual structure underlying a system, concept, or text, often guiding further development or thought.

Accounting Database

A digital collection of financial information and records that supports the storage, retrieval, management, and analysis of accounting data.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets on the balance sheet.