For which of the following operating segments of the financial plan is the cash relationship characterized exclusively as an inflow?
A) Revenues.
B) Capital expenditures (nonfinancial investments).
C) Risk management
D) Both a and b.
E) Both b and c.

Question

Quizplus · Accepted Answer

The operating segment of revenues is characterized exclusively as an inflow, as it represents the cash received from the sale of products or services. The other options can involve cash inflows and outflows, depending on the circumstances, such as capital expenditures (outflows) for nonfinancial investments that will generate future cash inflows, or risk management activities that can involve both inflows (e.g., premiums received) and outflows (e.g., insurance claims paid).

For Which of the Following Operating Segments of the Financial