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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


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 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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