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The estimated benefits from a project are expressed as cash flows instead of income flows because:

 

it is simpler to calculate cash flows than income flows.

 

it is cash, not accounting income, that is central to the firm's capital budgeting decision.

 

this is required by the Internal Revenue Service.

 

this is required by the Securities and Exchange Commission.

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/04/01
Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

it is cash, not accounting income, >>>>>>>>>>>>>>>>>>>>that is central to the firm's capital budgeting decision.

Muhammad Hamid Munir PMP
by Muhammad Hamid Munir PMP , Senior Project Manager/ System Program Manager , Ericsson

I agreed with  Mohammed Shahid Ullah- I will go with choice B which is ...it is cash, not accounting income, that is central to the firm's capital budgeting decision.

DHANAPATI BHATTARAI
by DHANAPATI BHATTARAI , Finance Manager , DMS Boot Industries Pvt. Ltd

Calculation of Cash flows is simpler than Income

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Correct Ans is

 

It is cash, not accounting income, that is central to the firm's capital budgeting decision.

 

Thank you Emaad

Mohammed Fathe  Shaheem
by Mohammed Fathe Shaheem , Operation Executive , Arabian Construction Company

B--------------------------------

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

it is cash, not accounting income, that is central to the firm's capital budgeting decision.. $$$$$$$$$$$$$$$$$$$$$$$$$$

Deleted user
by Deleted user

 

I agree with experts

Thank you

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Agree with Mr. Emad.............

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Good answer add by experts <<<<<<<<<<

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>> it is cash, not accounting income, that is central to the firm's capital budgeting decision.

 

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