Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
An example of Cash Flow from Investing Activities :
Options:
Issue of Shares
Purchase of Machinery
Cash Sales
None of the above
Correct Answer:
Purchase of Machinery
Explanation:
Cash Outflows from investing activities: a. Cash payments to acquire fixed assets including intangibles and capitalised research and development. b. Cash payments to acquire shares, warrants or debt instruments of other enterprises other than the instruments those held for trading purposes. c. Cash advances and loans made to third party (other than advances and loans made by a financial enterprise wherein it is operating activities)