Question

True or false Decrease in short term investments is an outflow under the investing activities section.

True or false

Decrease in short term investments is an outflow under the investing activities section.

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Answer #1

Answer-----------------------False

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A decrease in short term investments is an inflow under the investing activities section not outflow. The decrease in short term investments means short term investments are sold. Even if investment are sold at loss there still be some amount to be shown in investing section of cash flows.

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