Which of the following are considered as relevant cash flows from side effects? More than one answer may be correct. Multiple select question. Cash flows from sunk costs. Cash flows from beneficial spillover effects. Cash flows from financing costs. Cash flows from erosion effects.
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Which of the following are considered as relevant cash flows from side effects? More than one answer may be correct.
Cash flows from sunk costs.
Cash flows from beneficial spillover effects.
Cash flows from financing costs.
Cash flows from erosion effects.
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- FAR- Conceptual Framework Kindly help me answer the following : 1. Which of the following should be considered a current value measure? * a. Replacement cost and discounted cash flow b. Replacement cost and exit value c. Replacement cost, exit value and discounted cash flow d. Exit value and discounted cash flow 2. Obligations to transfer an economic resource include all, except * a. Obligation to provide services b. Obligation to pay cash c. Obligation to transfer an economic resource even if a specified future event does not occur d. Obligation to deliver goods 3. Which is not a purpose of the Conceptual Framework? * a. To assist accountants in selecting among alternative accounting and reporting methods. b. To provide definitions of key terms and concepts. c. To assist IASB in the standard-setting process. d. To provide specific guidelines for resolving situations not…Cash flows, rather than accounting profits, are used in project analysis. Whatis the basis for this emphasis on cash flows as opposed to net income?Match each of the terms below with its definition. 1. Sunk cost a. Additional costs incurred from a course of action 2. Out-of-pocket cost b. Additional revenue from a course of action 3. Opportunity cost c. A future outlay of cash 4. Incremental cost d. Potential benefit lost from taking a course of action 5. Incremental revenue e. A cost that arises from a past decision and cannot be changed
- Which of the following terms accurately describe what a resource is worth in its next- best use. a. Sunk cost b. Opportunity cost c. Incremental cash flow d. ExternalitySelect all that apply Identify the true statements about the payback period method. More than one answer may be correct. Multiple select question. It is biased toward liquidity. It adjusts any risks associated with projects. It adjusts for uncertainty of later cash flows. It adjusts for the time value of money.Identify the true statements about the payback period method. More than one answer may be correct. Multiple select question. It is biased toward liquidity. It adjusts for the time value of money. It adjusts any risks associated with projects. It adjusts for uncertainty of later cash flows.
- What is an example of a situation where TVM calculations are used? HOw would cash flow be impacted?Which control is not a part of the fixed asset system?a. formal analysis of the purchase requestb. review of the assumptions used in the capital budgeting modelc. development of an economic order quantity modeld. estimates of anticipated cost savingsThe amount of revenue that is foregone from an alternative use of cash is called a.sunk cost b.differential revenue c.opportunity cost d.differential profit
- Which of the following statements is true with regard to cash flows resulting from financing costs? a. They should be included in the cash flow calculations. b. Financing cash flows cannot include dividend payments to stockholders and interest payments to bondholders. c. Financing costs are captured in the original investment of a project’s cash flows. d. If cash outflows associated with financing costs were deducted from the cash flows for a project, it would be double-counting the financing costs of the investment.Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use more of them?Which of the following is NOTa relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project? a. Shipping and installation costs. b. Cannibalization effects. c. Opportunity costs. d. Sunk costs that have been expensed for tax purposes. e. Changes in net working capital. Please explain your answer for better understanding.
