Why is differential analysis considered to be an extension of financial modeling which focuses on cash flows?
A)Cash is the medium of exchange.
B)Cash serves as a common,objective measure of the benefits of alternatives.
C)Cash serves as a common,objective measure of the costs of alternatives.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

Differential analysis extends financial modeling by focusing on cash flows because cash is the medium of exchange and serves as a common, objective measure for both the benefits and costs of alternatives.

Why Is Differential Analysis Considered to Be an Extension of Financial