Question

Which of the following is not an investing activity under cash flow statement?

Options

• Purchase of marketable securities for ₹ 25,000 for cash.

• Sale of land for ₹ 2,80,000 for cash.

• Sale of 2,500 shares (held as investment) for ₹ 15 each.

• Purchase of equipment for ₹ 1,00,000 for cash.

Answer 1

Purchase of marketable securities for ₹ 25,000 for cash.

Explanation:

Purchase and sale of marketable securities, land, shares held as investment, and equipment are typically classified as investing activities. Transactions that do not involve investment in long-term assets or investments would not be investing activities.