Question : Under which type of activity will you classify 'Proceeds from Sale of Machinery' while preparing the Cash Flow Statement _____________.
Option 1: Operating activities
Option 2: Investing activities
Option 3: financing activities
Option 4: Cash and cash equivalents
Answer (1)
26th Jan, 2024
Correct Answer: Investing activities
Solution : Answer = Investing activities
'Proceeds from the Sale of Machinery' will be classified as investing activities while preparing the Cash Flow Statement. This is because it involves the sale of a long-term asset, which falls under investing activities as it represents a change in the company's investment in fixed assets.
Hence, the correct option is 2.
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