Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

In cash flows, when a company invests in fixed assets and short-term financial investments results in

Options:

Increased Equity

Increased Liabilities

Decreased Cash

Increased Cash

Correct Answer:

Decreased Cash

Explanation:

Investing in fixed assets and short-term financial investments typically requires an outflow of cash from the company's resources. Therefore, there is a decrease in cash due to these investments.