Investing Activities of Cash Flow Statement

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Investing Activities of Cash Flow Statement
« on: September 17, 2018, 03:21:00 PM »
Investing Activities:
   Investing activities generally include those transactions and events that affect long-term assets, namely, purchase and sale of both fixed assets and business interests. Clearly, sales transactions would generate cash inflows and purchase transactions would generate cash outflows. Generally speaking, transactions that involve acquiring or disposing of non-current assets are classified as investing activities. These transactions include acquiring or selling property, plant and equipment; acquiring or selling securities held for long-term investment, such as bond and stocks of other companies and lending money to another entity and the subsequent collection of the loan.
   Changes in non-current assets those are not included in net income.
Cash inflows:
   From collecting principal on loans
   From selling long-term productive assets
   From selling available for sale securities
   From selling (discounting) of notes
   From selling held to maturity securities
Cash Outflows:
   To purchase long term productive assets
   To purchase available for sale securities
   To make loans to others
   To purchase held to maturity securities
Dr. Md. Abdur Rouf
Associate Professor of Accounting
Faculty of Business and Economics
Daffodil International University

Offline Raisa

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Re: Investing Activities of Cash Flow Statement
« Reply #1 on: September 25, 2018, 12:52:41 PM »