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Question
Statement I: Sale of marketable securities will result in no flow of cash.
Statement II: Debentures issued as collateral security will result in inflow of cash.
Options
Both statements are correct.
Both statements are incorrect.
Statement I is correct, and statement II is incorrect.
Statement I is incorrect, and statement II is correct.
MCQ
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Solution
Both statements are incorrect.
Explanation:
- Statement I is incorrect because the sale of marketable securities results in a cash inflow.
- Statement II is also incorrect because issuing debentures as collateral security does not bring any cash inflow.
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Notes
The answer in the textbook is incorrect.
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