McqMate
Q. |
The estimated benefits from a project are expressed as cash flows instead of income flows because: |
A. | it is simpler to calculate cash flows than income flows. |
B. | it is cash, not accounting income, that is central to the firm's capital budgeting decision. |
C. | this is required by the Internal Revenue Service. |
D. | this is required by the Securities and Exchange Commission. |
Answer» B. it is cash, not accounting income, that is central to the firm's capital budgeting decision. |
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