Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Where will you show sale and purchase of shares and securities if it relates to revenue generating activity?
Options:
Financing Activities
Cash and Cash Equivalents
Operating Activities
Investing Activities
Correct Answer:
Operating Activities
Explanation:
Revenue-generating activities, which are the core operations of the business, are included in the operating activities section of the cash flow statement. This section covers cash flows related to the main revenue-producing activities of the company, including the sale and purchase of goods and services. So, If the sale and purchase of shares and securities is revenue-generating activity, then it will be shown in operating activities.