State with reason whether Purchase of fixed asset on long term deferred payment would

result in inflow, outflow or no flow of cash.

Dear Student,
Purchase of Fixed assets on long-term deferred payment means fixed assets are purchased against long-term deferred liabilities.
The Journal entry for this transaction would be:

Fixed Assets A/c Dr.
 To Fixed Liabilities A/c

Therefore, from the above Journal entry we can see that there is no effect on the Cash Flow Position of the business.

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