Question

What are the investing activities of cash flow?

Answer 1

Investing activities are those activities that are related to the sales and purchases of long-term fixed assets such as land and building, plant and machinery, furniture, etc. Such fixed assets are not held for resale and are used for a comparatively long period of time. The investing activities are the peripheral activities are not similar to the core business or operating activities. Investing activities also include any income arising from sale and purchase of investments in other companies (or assets) such as rent received from leasing fixed assets. As per the AS-3, the major cash inflows and outflows from investing activities are enlisted below.

Cash Inflows from Investing Activities	Cash Outflows from Investing Activities
Cash receipts from sale/disposal of fixed assets	Cash payments to acquire securities.
Cash receipts from sale/disposal of securities	Cash payments to acquire fixed assets
Cash receipts from the repayment of advances and loans made to third parties	Cash loans made/given to the third parties (other than advances and loans made by the financial enterprise.
Cash receipts from an insurance company for any property involved in an accident.
Any income arising from fixed assets or investments such as interest, dividends, rent received by leasing assets, etc.