Asked by Olusegun Ajulo on Jul 23, 2024
Verified
An increase in fixed assets is a source of cash.
Fixed Assets
Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not easily converted into cash.
Source of Cash
Any activity or operation within a business that generates cash inflow.
- Evaluate the effect of various financial endeavors on the cash flow of a firm.
Verified Answer
AD
Alexis DanzeyJul 26, 2024
Final Answer :
False
Explanation :
An increase in fixed assets represents a use of cash, typically for the purchase of property, plant, and equipment, not a source of cash.
Learning Objectives
- Evaluate the effect of various financial endeavors on the cash flow of a firm.