Classify the following activities as (i) Operating activities (ii) Investing activities (iii) Financing activities (iv) Cash & cash equivalents : (1) Royalty received (2) Brokerage paid on purchase of shares (3) Buy
CS Executive · Company Accounts & Auditing Practices · PYQS · June 2019
Classify the following activities as (i) Operating activities (ii) Investing activities (iii) Financing activities (iv) Cash & cash equivalents : (1) Royalty received (2) Brokerage paid on purchase of shares (3) Buy back of own shares for cash (4) Marketable securities having maturity period of 3 months (5) Short-term deposits having maturity period of 4 months
Answer & Explanation:
Royalty Received: Operating Activities Brokerage paid on purchase of shares: Investing Activities Buy back of own shares for cash: Financing Activities Marketable Securities having maturity period of 3 months: Cash and Cash Equivalent Short-term deposits having maturity period of 4 months: Investing Activities
Topics: Cash Flow Statement
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