Question

Give two examples of cash outflow from investing activities.

Hint:

Investing = “where cash is \emph{parked} for the long term”—buying assets or investments → cash \emph{outflow}.

Answer 1

Step 1: Define investing activities.
They relate to acquisition/disposal of long-term assets and investments.
Step 2: List outflows (any two).
- Cash paid to acquire fixed assets (land, buildings, plant, patents). - Cash paid to acquire shares/debentures/other securities (long-term). (Also acceptable: advances/loans to other parties.)
Final Answer: \[ \boxed{\text{Purchases of fixed assets; Purchases of investments / loans advanced}} \] % Quciktip