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Identify the items NOT be shown under Investing Activities while making Cash Flow statement.
A. Proposed Dividend
B. Purchase of non-current Investments
C. Interest paid on long term borrowings
D. Sale of machinery
E. Marketable securities

Choose the most appropriate answer from the options given below:
  • a)
    A, B, C only
  • b)
    A, C, E only
  • c)
    B, D, E only
  • d)
    B, C, E only
Correct answer is option 'B'. Can you explain this answer?
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Identify the items NOT be shown under Investing Activities while makin...
Items NOT shown under Investing Activities while making Cash Flow statement:

Proposed Dividend:
- Proposed dividend is not shown under investing activities while making the cash flow statement.
- Dividends are classified as financing activities because they represent the distribution of profits to the shareholders.
- The cash outflow for dividend payments is reported in the financing activities section of the cash flow statement.

Purchase of non-current Investments:
- The purchase of non-current investments is shown under investing activities while making the cash flow statement.
- Non-current investments include long-term investments such as stocks, bonds, and other securities.
- The cash outflow for the purchase of non-current investments represents an investment in assets and is classified as an investing activity.

Interest paid on long term borrowings:
- Interest paid on long-term borrowings is not shown under investing activities while making the cash flow statement.
- Interest payments are classified as financing activities because they represent the cost of borrowing funds.
- The cash outflow for interest payments is reported in the financing activities section of the cash flow statement.

Sale of machinery:
- The sale of machinery is shown under investing activities while making the cash flow statement.
- The cash inflow from the sale of machinery represents a disposal of assets and is classified as an investing activity.

Marketable securities:
- Marketable securities are shown under investing activities while making the cash flow statement.
- Marketable securities are short-term investments that can be easily bought and sold in the financial markets.
- The cash inflow or outflow from the purchase or sale of marketable securities represents an investment activity.

Therefore, the correct answer is option B: A, C, E only. The proposed dividend, interest paid on long-term borrowings, and marketable securities are not shown under investing activities while making the cash flow statement.
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Identify the items NOT be shown under Investing Activities while makin...
(A) and (C) are in financing activity while (E) is cash equivalent.
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Identify the items NOT be shown under Investing Activities while making Cash Flow statement.A. Proposed DividendB. Purchase of non-current InvestmentsC. Interest paid on long term borrowingsD. Sale of machineryE. Marketable securitiesChoose the most appropriate answer from the options given below:a)A, B, C onlyb)A, C, E onlyc)B, D, E onlyd)B, C, E onlyCorrect answer is option 'B'. Can you explain this answer?
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