Buffers,Inc.,uses cash when buying and selling all of its investment assets.Consider the following statements: i.When investment asset accounts increase,net cash inflows have occurred.
Ii)When investment asset accounts increase,net cash outflows have occurred.
Iii)When the investment asset accounts decreased,net cash inflows have occurred.
Iv)When the investment asset accounts decrease,net cash outflows have occurred.
Which of the following combination is true?
A)i and iii
B)ii and iv
C)i and iv
D)ii and iii

Question

Quizplus · Accepted Answer

Investment asset accounts increase when investments are purchased which results in cash outflows; investment accounts decrease when investments are sold which results in cash inflows.