Question

Cash flow example from an Investing activity is ______.

Options

• Issue of Debenture

• Payment of Long-term Loan

• Purchase of Raw Materials for Cash

• Sale of Investment by Non-Financial Enterprise

Answer 1

Cash flow example from an Investing activity is Sale of Investment by Non-Financial Enterprise.

Explanation:

Non-financial businesses do not engage in things like buying and selling investments (like stocks and bonds) as part of their main business. So, when they sell an investment, that sale is shown on their cash flow sheet as a cash inflow from investing activities.