Skip to main content
Financial Accounting
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Back
Ratios: Capital Acquisition Ratio
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Ratios: Capital Acquisition Ratio
Download worksheet
Practice
Summary
Previous
2 of 10
Next
14. Financial Statement Analysis / Ratios: Capital Acquisition Ratio / Problem 2
Problem 2
What effect does purchasing fixed assets have on a company's cash flow and expansion strategy?
A
It decreases cash flow permanently and limits expansion opportunities.
B
It increases cash flow immediately and reduces the need for future investments.
C
It has no impact on cash flow but affects profitability.
D
It reduces cash flow initially but may lead to increased cash flow through business expansion.
AI tutor
0
Show Answer