Which of the Following Is True of the Differential Revenues

question 2

Multiple Choice

Which of the following is true of the differential revenues and expenses method?

• A) It is used to increase the magnitude and complexity of the information that must be considered in making an appropriate investment decision.
• B) It is estimated by only using cash flows.
• C) It is based on the concept that a dollar to be received right now has more value than does a dollar to be received at some time in the future.
• D) It comprises of estimating the changes in revenues and expenses from current operating results that will occur if an alternative is chosen.