Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Relevant Cash Flows
- This topic has 2 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
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- April 1, 2014 at 12:21 pm #163882
Hello,
Please why are opportunity costs, tax, residual value and working capital categorised as cash flows?Especially opportunity cost and tax.
Thank you
April 1, 2014 at 3:52 pm #163906I cannot believe that opportunity costs are classified as a relevant cash flow in an F7 cash flow question. Maybe this is from an F2(?) F5 (?) question on make or buy / lease or purchase? Certainly in F7 opportunity costs are NOT a relevant cash flow
Similarly residual value and working capital are not relevant to an F7 cash flow question.
Tax is, but by now I’m believing more and more that you are confusing a question from F2 / F5 with the F7 cash flow topic
Am I correct?
April 1, 2014 at 3:52 pm #163907I cannot believe that opportunity costs are classified as a relevant cash flow in an F7 cash flow question. Maybe this is from an F2(?) F5 (?) question on make or buy / lease or purchase? Certainly in F7 opportunity costs are NOT a relevant cash flow
Similarly residual value and working capital are not relevant to an F7 cash flow question.
Tax is, but by now I’m believing more and more that you are confusing a question from F2 / F5 with the F7 cash flow topic
Am I correct?
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