Vidyalelo
Management · Q483

Financial Management

Graduate and Post Graduate · Management · question 483

Q483

Cash flows occurring with more than one change in sign of cash flow are classified as

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

Answer: Option A

Solution

Answer: Option A
Solution:
Cash flows occurring with more than one change in sign of cash flow are 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.