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Question : 'Loans and advances granted' by a company will be considered, as which type of activity while preparing a Cash Flow Statement.

Option 1: Operating Activities

Option 2: Investing Activities

Option 3: Financing activities

Option 4: None of the above


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Investing Activities


Solution : Answer = Investing Activities

'Loans and advances granted' by a company will be considered as investing activities while preparing the Cash Flow Statement. This is because it involves the deployment of funds in assets to generate returns in the future.
Hence, the correct option is 2.

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