Question : Under which type of activity will you classify 'Proceeds from Sale of Patents' while preparing Cash Flow Statement?
Option 1: Operating activities
Option 2: Investing activities
Option 3: Financing activities
Option 4: Cash and cash equivalents
Answer (1)
22nd Jan, 2024
Correct Answer: Investing activities
Solution : Answer = Investing activities
'Proceeds from the Sale of Patents' would be classified under investing activities while preparing the Cash Flow Statement. This transaction involves the sale of a long-term asset, which falls under investing activities as it reflects changes in the company's investment portfolio or capital assets.
Hence, the correct option is 2.
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