Cash outflows generated by capital investments include all of the following except:

Question

Quizplus · Accepted Answer

Depreciation expense is not a cash outflow; it is an accounting entry that spreads the cost of a capital asset over its useful life for tax and reporting purposes. Transportation costs, increased operating expenses, and an increase in the required amount of working capital are actual cash outflows associated with capital investments.

Cash Outflows Generated by Capital Investments Include All of the Following