Multiple Choice Questions on An example of Cash Flows from Investing Activity is ........ for UPSC EPFO Exam Preparation

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Multiple Choice Questions

An example of Cash Flows from Investing Activity is ........

General Accounting Principles cash flow statement
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    An example of Cash Flows from Investing Activity is :

    Cash Revenue from Operations

    Incorrect Answer

    Commission Received

    Incorrect Answer

    Payment of cash for purchase of fixed assets

    Correct Answer

    Dividend paid

    Incorrect Answer
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    Explanation:
    • Purchase of fixed assets (negative cash flow)
    • Sale of fixed assets (positive cash flow)
    • Purchase of investment instruments, such as stocks and bonds (negative cash flow)
    • Sale of investment instruments, such as stocks and bonds (positive cash flow)
    • Lending of money (negative cash flow)
    • Collection of loans (positive cash flow)
    • Proceeds of insurance settlements related to damaged fixed assets (positive cash flow)

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