Which of the Following Statements Is True of a Cash

question 16

Multiple Choice

Which of the following statements is true of a cash flow break-even analysis?

• A) It is useful in understanding the cash requirements of a business and in estimating how much financing a new business will require.
• B) As per the cash flow break-even analysis, the cash flow break-even point calculation usually focuses on the computation of EAT break-even.
• C) It summarizes the cash flows into and out of a firm, usually on monthly basis.
• D) It helps an entrepreneur in understanding where the money is coming from and where it is going.

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Definitions:

Maximization Theory

The principle that decision-makers aim to make choices that result in the highest possible benefit or utility.

Behavior Allocation

The distribution of behavioral responses across different situations or stimuli, often influenced by variable reinforcement schedules.

1:2 Contingency

A specific reinforcement schedule where one behavior is reinforced every second time it occurs.

1:1 Contingency

In behavioral psychology, this refers to a situation where every instance of a specific behavior is followed by a particular consequence, ensuring a direct correlation between behavior and outcome.