CFA Practice Question
Which of the following activities increase cash, if all other factors are equal?
II. Acquiring inventory
III. Selling fixed assets
IV. Factoring accounts receivable
I. Reducing long-term debt
II. Acquiring inventory
III. Selling fixed assets
IV. Factoring accounts receivable
Correct Answer: III and IV
I: A decrease in a liability is a use of cash. II: An increase in assets is a use of cash.
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