In cash flows, when a firm invests in fixed assets and short-term financial investments results in

Question

RRB Paper · Accepted Answer

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increased equity

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In cash flows, when a firm invests in fixed assets and short-term financial investments results in decreased cash.
Investing activities include transactions involving fixed assets or short-term financial investments.
For example, if a company buys new IT infrastructure, its cash goes down at the time of the purchase.
On the other hand, if it sells a building or a Treasury bond, its cash goes up.