Question

Which of the following will not amount to a cash outflow from operating activities?

विकल्प

• Purchase of marketable securities

• Cash payment to suppliers of goods

• Payment of employee benefit expenses

• Payment of insurance premium

Answer 1

Purchase of marketable securities

Explanation:

Because these are considered Cash Equivalents rather than an operating expense. In a Cash Flow Statement, “Operating Activities” include primary revenue-generating activities like paying suppliers, employees, or insurance premiums. Marketable securities, however, are highly liquid investments that are part of the “Cash and Cash Equivalents” category itself. Purchasing them is simply a movement of funds within the cash balance, not an outflow from operations.