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      Question

      Which of the following is a use of funds in fund-flow

      analysis?
      A Decrease in long-term borrowings Correct Answer Incorrect Answer
      B Sale of fixed assets Correct Answer Incorrect Answer
      C Issue of equity shares Correct Answer Incorrect Answer
      D Decrease in inventory Correct Answer Incorrect Answer

      Solution

      A decrease in long-term borrowings indicates a repayment of debt, which is an application or use of funds. The other options are sources of funds.

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