Question : Under which type of activity will you classify 'Proceeds from the sale of trademarks' while preparing a Cash Flow Statement?
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: Cash and cash equivalent
Answer (1)
26th Jan, 2024
Correct Answer: Investing Activities
Solution : Answer = Investing activities
Proceeds from the sale of trademarks would be classified as investing activities in the Cash Flow Statement. This is because it involves the disposal of long-term assets, which falls under investing activities that reflect changes in investments and fixed assets.
Hence, the correct option is 2.
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