Exam Question
Amortization is considered a source of funds to the firm because
- 1. it is purely an accounting entry and doesn’t involve a direct disbursement of funds, freeing up these funds for other investments
- 2. it represents a reduction in asset holdings
- 3. it represents an increase in an asset account
- 4. amortization is not a source of funds
View Answer
Answer 1. It is purely an accounting entry and doesn’t involve a direct disbursement of funds, freeing up these funds for other investments
Practice set and Exam Quiz
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