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Accountants Do Not Depreciate Investment in Net Working Capital Because

Question 75

Multiple Choice

Accountants do not depreciate investment in net working capital because


A) it is not a cash flow.
B) it is recovered during or at the end of the project; thus it is not a depreciating asset.
C) it is a sunk cost.
D) working capital appears on the balance sheet, not the income statement.

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