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    Question

    In fund flow analysis, which of the following is

    considered a source of funds?
    A Increase in fixed assets Correct Answer Incorrect Answer
    B Decrease in long-term borrowings Correct Answer Incorrect Answer
    C Issue of equity shares Correct Answer Incorrect Answer
    D Increase in inventory Correct Answer Incorrect Answer
    E Dividend paid Correct Answer Incorrect Answer

    Solution

    Sources increase funds (e.g., issue of shares, long-term borrowings, reduction in working capital). Uses reduce funds.

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