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Consider the following statements: (1) Depreciation reduces tax liability; hence it is a source of funds. (2) Decrease in current liabilities during the year results in an increase in working capital. (3) The term cash equivalents include short-term marketable investments. (4) Conversion of debentures into equity shares appears in the fund’s flow statement. (5) Only non-cash expenses are added to net profit to find out funds from operation.Select the incorrect statements from the options given below

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Consider the following statements:<br /> (1) Depreciation reduces tax liability; hence it is a source of funds.<br /> (2) Decrease in current liabilities during the year results in an increase in working capital.<br /> (3) The term cash equivalents include short-term marketable investments.<br /> (4) Conversion of debentures into equity shares appears in the fund’s flow statement.<br /> (5) Only non-cash expenses are added to net profit to find out funds from operation.<br />Select the incorrect statements from the options given below






 
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