info@jobexams.pk

MCQ Detailed View

Explore the question in detail with explanation, related questions, and community discussions.

1 FINANCE MCQS

A cash flow that starts negative, then becomes positive, and later remains positive is called ____________?

  • Normal costs
  • Non-normal costs
  • Non-normal cash flow
  • Normal cash flow
Correct Answer: C. Non-normal cash flow

Detailed Explanation

When a project or investment has a cash flow pattern that changes sign more than once, such as starting with a negative cash outflow, then turning positive and staying positive, it is called a non-normal cash flow.
In contrast, normal cash flows start with an initial outflow (negative) followed by all positive inflows. Non-normal cash flows are common in projects that require additional investments later.

Discussion

Thank you for your comment! Our admin will review it soon.
No comments yet. Be the first to comment!

Leave a Comment