Vidyalelo
Commerce · Q491

Financial Management

Graduate and Post Graduate · Commerce · question 491

Q491

Cash flow which starts negative then positive than again positive cash flow is classified as

A.
normal costs
B.
non-normal costs
C.
non-normal cash flow
Answer
D.
normal cash flow

Answer: Option C

Solution

Answer: Option C
Solution:
Cash flow which starts negative then positive than again positive cash flow is classified as non-normal cash flow. Non-normal cash flow stream (also called unconventional cash flow) is a pattern of cash flows in which the direction of cash flows changes more than once. It is also termed as unconventional cash flow.