Investment in Operating Capital Is

question 68

Multiple Choice

Investment in operating capital is:

• A) the change in assets plus the change in current liabilities.
• B) the change in gross fixed assets plus depreciation.
• C) the change in gross fixed assets plus the change in free cash flow.
• D) None of the options.

---

Definitions:

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Cost of Purchases

The total price paid for goods acquired for resale, including transportation and handling expenses.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at the end of a specific period.

Physical Count

An inventory auditing process where the actual quantity of goods on hand is counted and compared with accounting records.