Which of the Following Is True of the Differential Revenues

Multiple Choice

Which of the following is true of the differential revenues and expenses method?

A) It is used to increase the magnitude and complexity of the information that must be considered in making an appropriate investment decision.
B) It is estimated by only using cash flows.
C) It is based on the concept that a dollar to be received right now has more value than does a dollar to be received at some time in the future.
D) It comprises of estimating the changes in revenues and expenses from current operating results that will occur if an alternative is chosen.