Question

Which of the following principle is not followed in preparation of Project cash flows?

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Answer 1

Answer:

Explanation:

• What is cash flows? Project cash flows refers how cash flows in and out of an organization in regard to the specific existing or potential projects.
• There are four types of cash flows-

Cash Flows From Operations

Cash Flows From Investing

Cash Flows From Financing

Cash Flows From Coverage Ratio

• The examples of cash flow are- payroll, the cost of goods sold, rent, and utilities.
• To calculate the cash flow there is formula.
• The project cash flow is based on the principle of Separation.
• The separation principle is used to bring out the project cash flows of a particular project. it is important part of capital budgeting.

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