Question

Sales proceeds from the asset sold at the time end of project forecasting period is treated as________

Answer 1

under financing activity

Answer 2

Sales proceeds from the asset sold at the time end of project forecasting period is treated as initial cash flow.

Initial cash flow refers to the amount of money paid out or received at the start of a project or investment. Usually it is a negative amount because mostly projects need a large initial capital investment by a firm which generates a positive cash flow in the course of time.