Question : Under which type of activity will you classify 'Proceeds from the sale of investment' while preparing a Cash Flow Statement?
Option 1: Operating Activities
Option 2: Investing Activities
Option 3: Financing Activities
Option 4: Cash and cash equivalent
Correct Answer: Investing Activities
Solution : Answer = Investing Activities
"Proceeds from the sale of investment" would be classified as an investing activity when preparing the Cash Flow Statement. This is because it involves transactions related to the acquisition and disposal of long-term assets, which fall under investing activities. Hence, the correct option is 2.
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