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Under which type of activity will you classify the sale of shares of another company while preparing cash flow statement?
  • a)
    Financing Activity
  • b)
    Investing and Financing
  • c)
    Investing Activity
  • d)
    Operating Activity
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Under which type of activity will you classify the sale of shares of a...
Sale of shares of other company are part of investment which is now sold by the company. It is sale of investment, so it will take place in investing activity.
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Under which type of activity will you classify the sale of shares of another company while preparing cash flow statement?a)Financing Activityb)Investing and Financingc)Investing Activityd)Operating ActivityCorrect answer is option 'C'. Can you explain this answer?
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