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  • Directions: State whether the following statement is True...
Multiple choice

Directions: State whether the following statement is True Or False.

Amortization of preliminary expenses is a use of funds.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amortization is a non-cash expense. It does not involve an actual outflow of funds, so it is not considered a use of funds in a funds flow statement.

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