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 is not a depreciating asset.
C)it is a sunk cost.
D)working capital appears on the balance sheet,not the income statement.

Question

Quizplus · Accepted Answer

Investment in net working capital is not depreciated because it is recovered during or at the end of the project, making it a recoverable asset rather than a depreciating one.

Accountants Do Not Depreciate Investment in Net Working Capital Because