Practice Cash Flow From Investing Activities (3.2) - Cash Flow

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8 questions

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Exercise
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6 sample questions

Question 1.
What are cash flows from investing activities?
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Consider what types of transactions are included.
Question 2.
Give an example of a fixed asset.
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Think of assets used for operations.
3Question 3.
What is included in cash flow from investing activities?
- Sales of goods
- Purchase of fixed assets
- Interest paid
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Focus on the transactions related to long-term assets.
4Question 4.
True or False: Cash received from selling investments is a cash inflow from investing activities.
- True
- False
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Think about how sales impact cash flow.
Question 5.
A company invests ₹1,000,000 in machinery. It also sells an old machine for ₹300,000. After one year, it earns ₹25,000 from dividends. Calculate the net cash flow from investing activities.
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Separate inflows and outflows to find net cash flow.
Question 6.
Illustrate how a company decides on allocating cash for new projects based on cash flow from investing activities. Discuss possible implications of this decision.
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Consider the strategic impact of investment decisions.

4 more questions in this section. Enroll free to practise them all.