A Customer's Check Received in Settlement of an Account Receivable

question 91

True/False

A customer's check received in settlement of an account receivable is considered cash.

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Definitions:

After-Tax Cash Flows

The net cash inflow or outflow after taking into account the effects of taxation.

After-Tax Cost

The expense of a transaction or investment after taking into account the effects of taxes.

Net Present Value

A valuation method that calculates the present value of an investment's expected cash inflows and outflows, used to assess its profitability.

Initial Cash Outlay

This refers to the amount of money initially invested or spent to start a project or investment.