Buffers, Inc

Multiple Choice

Buffers, Inc., uses cash when buying and selling all of its investment assets. Which of the following statements regarding cash flows are true? (1) . When the investment asset accounts increase, net cash inflows have occurred. (2) . When the investment asset accounts increase, net cash outflows have occurred.
(3) ) When the investment asset accounts decreased, net cash inflows have occurred. (4) . When the investment asset accounts decrease, net cash outflows have occurred.

A) Statements (1) and (3) are true.
B) Statements (2) and (4) are true.
C) Statements (1) and (4) are true.
D) Statements (2) and (3) are true.