Proceeds from sale of patent is classified under which activity in Cash Flow Statement?
Investing
The correct answer is option 1. Proceeds from the sale of a patent are classified under "Investing activities" in the Cash Flow Statement because the sale of long-term assets like patents falls under investing activities, which include the purchase and sale of physical and intangible assets.
Important Questions from Cash Flow Analysis
Which of the following activities should be shown separately in the cash flow statement prepared as per Accounting Standard-3 ?
a. Cash flow from borrowing activities.
b. Cash flow from operating activities.
c. Cash flow from financing activities.
d. Cash flow from investing activities.
e. Cash flow from miscellaneous activities.
Codes :
- The balance of property at cost has been ₹ 20,000 and ₹ 17,000 in 2015 and 2016, respectively. The profit on the sale of property of ₹ 2,000 is credited to Capital Reserve Account. New property costing ₹ 5,000 was bought in 2016. Determine the sale proceeds from property.
- Which of the following is not a cash inflow ?
Cash from Operation is equal to
Match List–I with List–II :
List I
(Transaction)
List II
(Activity)
(a)
Cash payments of salaries and wages 1.
Investing (b)
Cash proceeds from issuing shares at a premium 2.
Operating (c)
Payment of income tax 3.
Financing (d)
Tax deducted at source on interest received from subsidiary company
Select the correct answer using the codes given below.
