Question

Which of the following is not an investing cash flow?

Options

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

• Sale of land for ₹ 28,000 for cash.

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

• Purchase of equipment for ₹ 500 cash.

Answer 1

Purchase of marketable securities for ₹ 25,000 cash.

Explanation:

Marketable security purchases are treated as cash and cash equivalents and do not count as part of the investment cash flow.