Surya Housing Finances Ltd gave ₹2000000 to Chand Construction House as cash advance. In the books of Surya Housing Finances Ltd, the transaction will lead to....................

Cash outflow from operating activities

A company might possess securities and loans with the intention of either conducting transactions or trading them. In both scenarios, these assets are considered as inventory held explicitly for the purpose of resale. Consequently, cash inflows and outflows resulting from the acquisition and sale of securities for transactions or trading are categorized as operating activities. Likewise, cash advances and loans extended by financial institutions are typically categorized as operating activities, as they pertain to the primary functions of such enterprises.