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
Correct Answer: Investing Activities
Solution : Answer = Investing Activities
"Proceeds from the sale of investment" would be classified as an investing activity when preparing the Cash Flow Statement. This is because it involves transactions related to the acquisition and disposal of long-term assets, which fall under investing activities. Hence, the correct option is 2.
Question : Under which type of activity will you classify 'Proceeds from the sale of trademarks' while preparing a Cash Flow Statement?
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
Question : Under which type of activity will you classify 'Proceeds from Sale of Goodwill while preparing a Cash Flow Statement?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile