Listed Below Are Six Terms Followed by a List of Phrases

question 130

Multiple Choice

Listed below are six terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term by placing the letter designating the term in the space provided.
-____ Pay salaries to employees.

• A)Cash inflow from operating activities
• B)Cash outflow from financing activities
• C)Cash outflow from operating activities
• D)Cash inflow from investing activities
• E)Cash inflow from financing activities
• F)Cash outflow from investing activities

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Definitions:

Initial Cost

The initial amount of money invested or spent to purchase or start a new project, asset, or business, excluding ongoing or future costs.

Mutually Exclusive

Mutually exclusive describes a scenario where the occurrence of one event makes the occurrence of another impossible.

Unequal Lives

Refers to comparing projects or assets with different durations or expected lifetimes to make investment or capital budgeting decisions.

Equivalent Annual Annuity

A method used in capital budgeting to compare the profitability of investments with different lifespan by converting them into an equivalent annuity.