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In cash flows, when a firm invests in Fixed Assets and Short-term Financial Investments results in: -

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Question

In cash flows, when a firm invests in Fixed Assets and Short-term Financial Investments results in:

Options

  • Increased Equity

  • Increased Liabilities

  • Decreased cash

  • Increased cash

MCQ

Solution

Decreased cash

Explanation:

When a company invests in Fixed Assets and Short-Term Financial Investments, it reduces its cash flow.

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