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'An Enterprise May Hold Securities and Loans for Dealing Or Trading Purposes in Which Case They Are Similar to Inventory Acquired Specifically for Resale.' is the Statement True? Cash Flows from Such Activities Will Be Classified Under Which Type of Activity While Preparing 'Cash Flow Statement'. - Accountancy

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Question

'An enterprise may hold securities and loans for dealing or trading purposes in which case they are similar to inventory acquired specifically for resale.' Is the statement true? Cash flows from such activities will be classified under which type of activity while preparing 'Cash flow statement'.

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Solution

Cash flows from such activities will be classified under Operating Activity.

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2015-2016 (March) Foreign Set 1
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