Which of the statements below is TRUE? A) The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. B) An increase in working capital can be brought about by an increase in inventory. C) Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. D) Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.
Which of the statements below is TRUE? A) The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. B) An increase in working capital can be brought about by an increase in inventory. C) Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. D) Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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7
Transcribed Image Text:QUESTION 7
Which of the statements below is TRUE?
A) The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project.
B) An increase in working capital can be brought about by an increase in inventory.
C) Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases.
D) Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.
A
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