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Question : While preparing Cash Flow Statement what type of activity is, 'Payment of Cash to acquire Debentures by an Investment company'?

Option 1: Operating Activities

Option 2: Investing activities

Option 3: Financing activities

Option 4: None of the above


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Operating Activities


Solution : Answer = Operating Activities

The payment of cash to acquire debentures by an investment company is classified as investing activities while preparing the Cash Flow Statement. This is because it involves investments in financial instruments, which fall under investing activities.
Hence, the correct option is 1.

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