As a Project Comes to Its End,there Is a Disinvestment

question 91

True/False

As a project comes to its end,there is a disinvestment in working capital,which also generates positive cash flow as inventories are sold off and accounts receivable are collected.

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Definitions:

Ledger Account

A set of accounts in a ledger that provides a record of financial transactions categorized by account type.

Record-Keeping Function

The systematic process of organizing and maintaining financial documents and records of a company.

Voucher System

A control or accounting system where vouchers (documents that prove a transaction) are used to authorize and record transactions in an accounts payable system.

Account Payable

The liability created by a purchase on account.