Cash inflow from interest income
Cash inflow from dividend income
Cash outflow to acquire fixed assets
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is C. Cash outflow to acquire fixed assets.
Investing activities are those that involve the acquisition and disposal of long-term assets. Examples of investing activities include:
- Acquiring land, buildings, and equipment
- Selling land, buildings, and equipment
- Making loans to other entities
- Collecting loans from other entities
Cash inflow from interest income and cash inflow from dividend income are classified as operating activities. Operating activities are those that involve the day-to-day running of a business. Examples of operating activities include:
- Selling goods and services
- Collecting cash from customers
- Paying suppliers for goods and services
- Paying employees
Therefore, the only option that is an investing activity is C. Cash outflow to acquire fixed assets.