Question : Under which type of activity will you classify 'Proceeds from Sale of Patents' while preparing Cash Flow Statement?
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
Correct Answer: Investing activities
Solution : Answer = Investing activities
'Proceeds from the Sale of Patents' would be classified under investing activities while preparing the Cash Flow Statement. This transaction involves the sale of a long-term asset, which falls under investing activities as it reflects changes in the company's investment portfolio or capital assets. Hence, the correct option is 2.
Question : Under which type of activity will you classify 'Proceeds from Sale of Goodwill while preparing a Cash Flow Statement?
Question : Under which type of activity will you classify 'Proceeds from Sale of Machinery' while preparing the Cash Flow Statement _____________.
Option 3: financing activities
Question : Under which type of activity will you classify 'Proceeds from the sale of investment' while preparing a Cash Flow Statement?
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: Cash and cash equivalent
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