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.

---

Definitions:

Debt-to-Equity Ratio

A measure indicating how a company's assets are financed through a mix of debt and equity from shareholders.

Balance Sheet

A report detailing a company's assets, liabilities, and equity of shareholders at a particular moment.

Interest Expense

The cost incurred by an entity for borrowed funds, which is recognized in the financial statements as an expense.

Times Interest Earned Ratio

A financial metric that measures a company's ability to cover its interest expenses with its earnings before interest and taxes.