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    Question

    Sale of an inventory of a firm would be classified as a:

    A Operating cash flow Correct Answer Incorrect Answer
    B Financing cash flow Correct Answer Incorrect Answer
    C Investing cash flow Correct Answer Incorrect Answer
    D Cannot say Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The sale of an inventory would be classified as an operating cash flow as it involves the direct business of a firm.

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