Which of the Following Best Describes a Flow (Rather Than

question 164

Multiple Choice

Which of the following best describes a flow (rather than a stock) ?

• A)you own $5,000 worth of government bonds
• B)you own a $100,000 house
• C)you own a coin collection valued at $10,000
• D)you earn $500 per week
• E)you own a $45,000 automobile

---

Definitions:

Net Present Value

A financial metric that represents the difference between the present value of cash inflows and outflows over a period of time.

Cash Outflow

Financial transactions that result in the outflow of money from a business, including payments for expenses, investments, and loans.

Cash Inflow

The amount of money being transferred into a business, project, or account, usually from operational, investing, or financing activities.

Cash Inflows

The total amount of money received by a company or an individual, from various sources, over a period of time.