Frank's is a furniture store that is considering adding appliances to its offerings. Which one of the following is the best example of an incremental cash flow related to the appliances?
A) Moving furniture to provide floor space for the appliances
B) Paying the rent for the store
C) Selling furniture to appliance customers
D) Having the current store manager oversee appliance sales
E) Using the store's billing system for appliance sales

Question

Quizplus · Accepted Answer

Selling furniture to appliance customers represents an incremental cash flow because it represents additional revenue that would not have been generated without the addition of appliances to the store's offerings. The other options listed do not represent incremental cash flows related to appliances specifically.

Frank's Is a Furniture Store That Is Considering Adding Appliances