Committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows is required when a company makes a(n):_______

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25-07-2022
Business

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Committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows is required when a company makes a(n):_______

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Tundexi Tundexi · Answer 1 · 2022-08-05T18:39:41+02:00

An Investment means the act of committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows.

What is an Investment?

This refers to the act of redirecting resources from being consumed today so that they may create benefits in the future and also includes use of assets to earn income or profit.

Therefore, act of committing funds today with the expectation of earning a return on those funds in the future in the form of additional cash flows is required when a company makes an investment.