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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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