An example of cash flow from investing activity is : |
Issue of debenture Repayment of long-term loan Sale of investment by non-financial enterprise None of the above |
Sale of investment by non-financial enterprise |
1 and 2 are financing activities. As per AS-3, investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc. Transactions related to long-term investment are also investing activities. |