State with reason whether ‘Purchase of fixed asset on long term deferred payment’ would result in inflow, outflow or no flow of cash.

State with reason whether ‘Purchase of fixed asset on long term deferred payment’ would result in inflow, outflow or no flow of cash.

Post category:Accountancy
Reading time:1 mins read

SOLUTION

There is no flow of cash because purchase of fixed asset on credit will not affect cash.

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