Question

Sale of Current Investment will be shown under ______.

विकल्प

• Operating Activity.

• Financing Activity.

• Investing Activity.

• Cash and Cash Equivalents.

Answer 1

Sale of Current Investment will be shown under Investing Activity.

Explanation:

Current investments are short-term financial assets held by a company to earn returns, rather than being part of day-to-day operations or capital structure. In a Cash Flow Statement, the cash proceeds from selling these investments represent a liquidation of financial assets, which falls directly under Investing Activities. However, there is a minor accounting nuance to keep in mind: if a current investment was specifically designated as a cash equivalent at the time of purchase because it matured within three months, its sale would be treated as part of Cash and Cash Equivalents instead of an investing inflow.