The correct answer is: C. abnormal cash flow
Abnormal cash flows are cash flows that are not expected to occur on a regular basis. They can be caused by a variety of factors, such as a one-time sale, a major investment, or a change in the company’s operations. Abnormal cash flows are not included in the company’s normal cash flow projections.
Normal cash flows are cash flows that are expected to occur on a regular basis. They are used to calculate the company’s cash flow from operations, which is one of the most important financial metrics. Normal cash flows include things like sales revenue, cost of goods sold, and operating expenses.
A project which have one series of cash inflows and results in one or more cash outflows is classified as an abnormal cash flow. This is because the cash outflows are not expected to occur on a regular basis. The project may be a one-time sale, a major investment, or a change in the company’s operations.
Abnormal cash flows can have a significant impact on a company’s financial performance. They can cause the company’s cash flow from operations to fluctuate, which can make it difficult to track the company’s financial health. Abnormal cash flows can also make it difficult to compare the company’s financial performance to that of other companies.
Companies should carefully manage their abnormal cash flows. They should try to avoid abnormal cash flows that are not necessary for the company’s long-term success. They should also try to smooth out the impact of abnormal cash flows on the company’s financial performance.