What are Investing activities in cash flow in accounting?

Finance ManagementAccountingAcademic Content

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 flowNegative cash flow
Sales of fixed assetsPurchase of fixed assets
Sale of investment instruments (stocks and bonds)Purchase of investment instruments (stock and bonds)
Collection of loansLending of loans
Insurance settlements
raja
Published on 13-Aug-2020 14:19:24
Advertisements