An increase in fixed assets is a source of cash.

Fixed Assets

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not easily converted into cash.

Source of Cash

Any activity or operation within a business that generates cash inflow.

Verified Answer

Final Answer :

False

Explanation :

An increase in fixed assets represents a use of cash, typically for the purchase of property, plant, and equipment, not a source of cash.

Learning Objectives