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If Marketable Securities Increase, Then Cash Should Usually Decrease by a Similar

Question 22

Multiple Choice

If marketable securities increase, then cash should usually decrease by a similar amount, since cash was probably used to purchase the securities. An exception to this occurs when:


A) the company paid through a check.
B) the marketable securities are purchased through a broker.
C) the company incurred debt or traded an asset for the securities.
D) the transaction was not recorded in the books of accounts.

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