Which of the Following Statements Regarding Investment in Working Capital

question 29

Multiple Choice

Which of the following statements regarding investment in working capital is incorrect?

• A) An investment in working capital, unlike an investment in plant and equipment, represents a positive cash flow when the investment is made.
• B) Net working capital cash flow is measured by the change in working capital, not the level of working capital.
• C) Net working capital may change during the life of a project.
• D) Working capital is generally recovered at the end of a project.

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External

Relating to, existing on, or connected with the outside or an outer part.

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Pertaining to or concerning an individual person, their characteristics, or their life.

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Cultural norms that dictate the appropriate expressions of emotions in various situations.

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The set of social behaviors, practices, beliefs, and norms that characterize a group or society, passed down from generation to generation.