An increase in long-term assets is a source of cash.

Name: An increase in long-term assets is a source of cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in long-term assets is not a source of cash. Long-term assets (such as property, plant, and equipment) are typically purchased with cash and therefore represent a use of cash rather than a source of cash. Sources of cash include cash inflows from operations, issuance of debt or equity, and sale of assets.

An Increase in Long-Term Assets Is a Source of Cash