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Small Business Management Study Set 2
Quiz 22: Managing the Firms Assets
Accounting Profits Are Not Identical to Actual Cash Flows
Question 39
True False
Accounting profits are not identical to actual cash flows.
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Q 40
The payback period technique measures how long it will take to recover the initial cash outlay and the total amount of interest unearned over the payback period as an opportunity cost.
Q 41
Liquidity has very little significance to small firms.
Q 42
The limited use of discounted cash flow tools by a small firm probably has more to do with the nature of the small firm itself than it does with the owners' willingness to learn.
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