Fixed asset sale represents an increase in cash.

Fixed Asset Sale

The process of selling long-term assets, such as property, plant, and equipment, for cash or other compensation.

Cash Increase

A rise in the amount of cash and cash equivalents held by a business.

Assess the consequences of diverse economic actions on the cash reserves of a firm.

Verified Answer

Final Answer :

True

Explanation :

When a fixed asset is sold, the company receives cash or equivalents in exchange, thus increasing its cash balance.

Learning Objectives

Assess the consequences of diverse economic actions on the cash reserves of a firm.