Q507
Relevant cash flow which company expects when its will implement project is classified as
A.
irrelevant cash flow
B.
relevant cash flow
C.
incremental cash flow
AnswerD.
decrease cash flow
Answer: Option C
Solution
Answer: Option C
Solution:
Relevant cash flow which company expects when its will implement project is classified as incremental cash flow. Incremental cash flow is the additional operating cash flow that an organization receives from taking on a new project. A positive incremental cash flow means that the company's cash flow will increase with the acceptance of the project.