Ans. Meaning of Investing Activities: Investing activities are related to purchase and sale of fixed assets such as machinery, furniture, building, computer etc. It excludes operating and financing activities.
Example of cash inflow from investing activities:
Cash receipts from sale of fixed assets including intangible assets. Sale of shares and other investments. Interest and Dividend received on investments.
Example of cash outflow from investing activities:
Purchase of fixed assets. Cash payments for purchase of shares and other investments. Payment of brokerage, commission etc. for buying fixed assets and investments.