Question

In cash flows, when a firm invests in fixed assets and short-term financial investments results in
A) Increased Equity
B) Increased Liabilities
C) Decreased Cash
D) Increased Cash​

Answer 1

Answer:

If a transaction increases current assets and current liabilities by the same amount, there would be no change in working capital. For example, if a company received cash from short-term debt to be paid in 60 days, there would be an increase in the cash flow statement