Maharashtra State BoardHSC Commerce 12th Board Exam
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State whether following statement is true or false : Purchase of fixed asset is operating cash flow. - Book Keeping and Accountancy

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MCQ
True or False

State whether following statement is true or false :

Purchase of fixed asset is operating cash flow.

Options

  • True

  • False

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Solution

False

Explanation: Purchase of fixed asset is an investing cost for the business. Therefore, it is an investing cash outflow for the business. On the other hand, operating cash flow consists of those activities of business that are related to the operations of the business.

Concept: Cash Flow Analysis
  Is there an error in this question or solution?

APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 12 Analysis of Financial Statements
Exercise | Q 3 | Page 384
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