Accounting · Relevant Cash Flow Definition

Which of the following best describes the term 'relevant cash flow' in managerial decision-making contexts?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The difference in future operating cash flows resulting directly from a decision.✓
2A historical cash flow that cannot be recovered or altered.
3All cash flows, including past financing cash flows, arising from an organization's operations.
4The benefit which would have been obtained from the best alternative foregone.

Correct answer

The difference in future operating cash flows resulting directly from a decision.

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