A ________ is composed of three primary cash flow components: initial expenses and capital outlays,operating cash flows,and terminal cash flows.
A)bank draft
B)trade draft.
C)draft
D)capital budget
E)draft.

Question

Quizplus · Accepted Answer

The three cash flow components described (initial expenses and capital outlays, operating cash flows, and terminal cash flows) are all key elements of a capital budget. Bank drafts and trade drafts are financial instruments used for payment, and a draft refers to a written order for payment. Therefore, D is the most appropriate choice for the given definition.

A ________ Is Composed of Three Primary Cash Flow Components