Thursday, January 22, 2015

What are the investing activities of cash flow? [4]

Ans. Investing Activities are related to purchase and sale of long term assets (Fixed Assets) as machinery, furniture, land and building etc.
Investing Activities of cash inflow include the following:
(i) Sale of Property including intangibles.
(ii) Disposal of shares and other investments
(iii) Interest and dividend received.
Investing Activities of cash outflow include the following:
(i) Purchase of fixed assets.
(ii) Cash Payment for acquiring the shares and other investments.
(iii) Payment of brokerage/ commission for buying the investments.