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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
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