Question:
Which of the following transactions will result in cash flows from operating activities?
Which of the following transactions will result in cash flows from operating activities?
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Operating activities include cash flows from the core business transactions like cash receipts from customers and payments to suppliers. Cash flows from investments and financing activities are classified separately.
Updated On: Jan 18, 2025
- Cash receipts from sale of investments ₹ 60,000
- Cash receipts from sale of goods ₹ 94,000
- Dividend received ₹ 31,000
- Payment of cash for purchase of fixed assets ₹ 3,00,000
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The Correct Option is B
Solution and Explanation
Cash flows from operating activities include receipts and payments related to the core business operations, such as cash received from the sale of goods or services. This is classified under operating activities in the cash flow statement.
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