QUESTION 4 To construct a common-size cash flow statement, we can A devide each line item in the cash flow statement by the company's net revenue in the same year. B. divide each line item of cash inflow by the total cash inflows and divide each line item of cash outflow by the total cash outflows in the same year. OC.devide each line item in the cash flow statement by the company's total assets in the same year. OD. Both A and B.

Principles of Accounting Volume 2
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Chapter11: Capital Budgeting Decisions
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Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...
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Please explain why the option is correct and remaining incorrect in detail answer in text explain each and every option need correct answer
QUESTION 4
To construct a common-size cash flow statement, we can
OA. devide each line item in the cash flow statement by the company's net revenue in the same year.
B.
divide each line item of cash inflow by the total cash inflows and divide each line item of cash outflow by the total cash outflows in the same
year.
OC. devide each line item in the cash flow statement by the company's total assets in the same year.
OD. Both A and B.
Transcribed Image Text:QUESTION 4 To construct a common-size cash flow statement, we can OA. devide each line item in the cash flow statement by the company's net revenue in the same year. B. divide each line item of cash inflow by the total cash inflows and divide each line item of cash outflow by the total cash outflows in the same year. OC. devide each line item in the cash flow statement by the company's total assets in the same year. OD. Both A and B.
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