Question

Which of the following is not Cash Flow from Investing Activities?

Options

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

• Sale of land for ₹ 28,000 cash.

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

• Purchase of equipment for cash ₹ 500.

Answer 1

Purchase of marketable securities for ₹ 25,000 cash.

Explanation:

Marketable securities are very liquid and act like short-term cash. Therefore, buying them is counted under Cash and Cash Equivalents, not investing activities. The other options (selling land, equipment, or investment shares) are all Investing Activities because they involve long-term assets.