Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

'Sale of old furniture at a loss' by the company comes under which category of activity in the cash flow statement?

Options:

Operating activity

Investing activity

Financing activity

None of these

Correct Answer:

Investing activity

Explanation:

Cash Inflows from Investing Activities-
Cash receipt from disposal of fixed assets including intangibles.
Cash receipt from the repayment of advances or loans made to third parties (except in case of financial enterprise).
Cash receipt from disposal of shares, warrants or debt instruments of other enterprises except those held for trading purposes.
Interest received in cash from loans and advances.
Dividend received from investments in other enterprises