Cash inflows include future cash revenue generated from an investment and any future residual value of the asset but exclude any future savings in ongoing cash operating costs resulting from the investment. true or false

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Business

Maritza

11 November, 19:33

Cash inflows include future cash revenue generated from an investment and any future residual value of the asset but exclude any future savings in ongoing cash operating costs resulting from the investment. true or false

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Holden Barrett · Answer 1

False

Explanation:

Cash inflows deal with the incoming of the cash which increases the cash balances. It can be due to revenue that is generated from an investment, by any residual value or salvage value of the assets, by having any savings in the operating cost that resulted from the investment.

It can be from anywhere but that transaction would be recorded that increases the balance of the cash while the rest transactions would be ignored.