The correct answer is (A) Both the Statements are true.
Explanation: Investing activities include acquisition or disposal of long-term assets such as property, plant, equipment, intangibles (like patents, goodwill), and long-term investments. Statement II further specifies one type of cash outflow that belongs under investing activities: cash spent on acquiring fixed assets, including intangibles or capitalised R&D costs. Hence, both statements correctly define aspects of investing cash flows.
Comparative Financial Data as on 31st March, 2024 and 2023
Particulars | 31.03.2024 (₹) | 31.03.2023 (₹) |
---|---|---|
Surplus (P&L) | 17,00,000 | 8,00,000 |
Patents | -- | 50,000 |
Sundry Debtors | 5,80,000 | 4,20,000 |
Sundry Creditors | 1,40,000 | 60,000 |
Cash and Cash Equivalents | 2,00,000 | 90,000 |