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Fatima Borrowed Money from the Bank to Expand Her Business

Question 63

Multiple Choice

Fatima borrowed money from the bank to expand her business.She plans to repay the loan within 12 months.How is this reflected on the statement of cash flows?


A) As an increase in equity and an increase to cash.
B) As an increase to cash.
C) As a decrease to cash.
D) As an increase to current liabilities.

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