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Preparing CFS-Direct Method

Investment in...

Question

Investment in sinking fund by a non profit organization is a/an ______________.

A

Liability

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B

Accumulated fund

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C

Asset

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D

Equity

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Solution

The correct option is C Asset
Investment is that amount which a company invests in sources other than raw material purchasing.
Investment is considered as an asset because it is that amount which will benefit the company in future.

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