Which among the following are sources of cash inflow from Investing Activities ?
(A) Dividend Received from investment
(B) Cash Receipt from Disposal of shares
(C) Cash Receipt from Disposal of Fixed Assets
(D) Cash proceeds from issuing Shares and Debentures
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
Investing activities are the purchase and sale of long-term assets and investments, and the income from those investments for a non-financial company.
(A) Dividend Received from investment — Correct. Dividend received on investments in other enterprises is an investing inflow.
(B) Cash Receipt from Disposal of shares — Correct. Selling shares held as investment brings in cash from an investment, so it is an investing inflow.
(C) Cash Receipt from Disposal of Fixed Assets — Correct. Sale proceeds of fixed assets are the main investing inflow.
(D) Cash proceeds from issuing Shares and Debentures — Incorrect. Issuing shares and debentures raises the company's own capital and borrowings, so it is a financing inflow.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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