Which of the Following Is Not an Inflow of Cash

question 127

Multiple Choice

Which of the following is not an inflow of cash?

• A) Depletion.
• B) Cash borrowed on a short-term note.
• C) Sale of a computer.
• D) Cash borrowed on a long-term note.

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Definitions:

Explicit Cost

The monetary payment made by a firm to an outsider to obtain a resource.

Accounting Profits

The net earnings of a company calculated according to generally accepted accounting principles, taking into account all explicit costs but not implicit costs.

Implicit Cost

Costs that represent the loss of potential gain from using assets in an alternative option rather than in their current use.

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.