Question

Which of the following transactions will result in cash flows from operating activities?

Options

• Cash receipts from sale of goods ₹ 94,000.

• Cash receipts from sale of investments ₹ 60,000.

• Dividend received ₹ 31,000.

• Payment of cash for purchase of fixed assets ₹ 3,00,000.

Answer 1

Cash receipts from sale of goods ₹ 94,000.

Explanation:

The proceeds from the sale of goods are classified as cash flow from operating activities because they are a component of the company’s core business operations.