In Terms of Revenues and Costs for a Project,which of the Statements

question 44

Multiple Choice

In terms of revenues and costs for a project,which of the statements below is FALSE?

• A)Projected revenues and costs are estimates of future activity.
• B)Estimates of revenues and costs begin with operating cash flow of the project.
• C)Projected revenues and costs form the basis of the potential for a project's acceptance or rejection.
• D)Estimates of revenues and costs begin with sales forecasts and the production costs associated with the sales forecast.

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Definitions:

Sales Journal

A financial journal used to record the sales of goods or services on credit.

Customer Purchase

A transaction where a customer acquires goods or services from a business.

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring compliance with the matching principle.