- CFA Exams
- CFA Exam: Level I 2021
- Study Session 11. Corporate Finance (2)
- Reading 35. Working Capital Management
- Subject 5. Managing Short-Term Financing
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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