Question :
Which of the following is not an Investing Cash Flow?
Option 1: Purchase of marketable securities for Rs.25,000 cash
Option 2: Sales of land for Rs.28,000 cash
Option 3: Sale of 2,500 shares (held as an investment) for Rs.15 each
Option 4: Purchase of equipment for Rs.500 cash
Answer (1)
25th Jan, 2024
Correct Answer: Purchase of marketable securities for Rs.25,000 cash
Solution : Purchase of marketable securities is considered as cash and cash equivalents and so does not form the part of investing cash flow.
Hence the correct answer is option 1.
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