What are Investing activities in cash flow in accounting?



This statement tells about how much is generated from investment related activities of a firm. Investments may be long term or short term. Investments includes assets, securities etc.

Examples of investing activities are as follows −

  • Purchase of investments.
  • Proceeds from the sale of investments.
  • Purchase of fixed assets.
  • Proceeds from the sale of fixed asset.

Investing activities does not includes −

  • Interest payments or dividends.
  • Debt, equity.
  • Deprecation of capital assets.
  • All.

Investing activities
Positive cash flow Negative cash flow
Sales of fixed assets Purchase of fixed assets
Sale of investment instruments (stocks and bonds) Purchase of investment instruments (stock and bonds)
Collection of loans Lending of loans
Insurance settlements
Updated on: 2020-08-13T10:49:24+05:30

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