computerwiz2677
Jan 4, 2011, 06:47 PM
Cash flow measures changes in the firm's cash account
Cash flow should be recognized when it occurs, and not according to GAAP principles
Cash flow should be evaluated on an after-tax basis.
Cash flow and accounting profit can at times lead to different conclusions regarding the desirability of a project.
Incremental cash flows should include opportunity costs but ignore sunk costs.
Cash flow should be recognized when it occurs, and not according to GAAP principles
Cash flow should be evaluated on an after-tax basis.
Cash flow and accounting profit can at times lead to different conclusions regarding the desirability of a project.
Incremental cash flows should include opportunity costs but ignore sunk costs.