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प्रश्न
Why is separate disclosure of cash flows from investing activities important? State.
Why is separate disclosure of cash flow from investing activities important while preparing Cash Flow Statement?
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उत्तर १
The cash outflows due to investing activities are huge and used to acquire long-term assets. If not disclosed in a separate manner it will signal a wrong position of cash and cash equivalents.
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उत्तर २
The separate disclosure of cash flow from investing activities is important as it helps to show the
inflows and outflows of long-term investments and fixed assets.
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