Question
When a project breaks even on an accounting basis, the cash flow for that period will equal Blank______.
Multiple choice question.
revenues for that period
the depreciation allowance for that period
net working capital for that period
net income for that period
Multiple choice question.
revenues for that period
the depreciation allowance for that period
net working capital for that period
net income for that period
Answers
GPT-4o mini
When a project breaks even on an accounting basis, the cash flow for that period will equal **the depreciation allowance for that period**.
This is because at breakeven, total revenues equal total expenses, and net income is zero. However, since depreciation is a non-cash expense, the cash flow will reflect the depreciation expense as a positive cash flow adjustment.
This is because at breakeven, total revenues equal total expenses, and net income is zero. However, since depreciation is a non-cash expense, the cash flow will reflect the depreciation expense as a positive cash flow adjustment.