Net Cash Flows Is Defined as Which of the Following

question 36

Multiple Choice

Net cash flows is defined as which of the following?

• A)After tax income minus expenses and saving for an emergency fund,investments and major asset purchases
• B)After tax income minus expenses and saving for an emergency fund and investments
• C)After tax income minus expenses and saving for an emergency fund
• D)After tax income minus expenses

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life.

Capital Lease

A lease classified by lessees as an asset purchase, indicating that the lessee effectively has control over the asset during the lease term.

Interest Revenue

Income earned from deposit accounts or investments through the interest paid by the borrower to the lender.