8 Views

Question : Where will you show purchase of intangible assets in a Cash Flow Statement?

Option 1: Shown as outflow under 'Cash flows from investing activities'.

Option 2: Shown as outflow under 'Cash flows from operating activities'.

Option 3: Shown as inflow under 'Cash flows from investing activities'.

Option 4: None of the above


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Shown as outflow under 'Cash flows from investing activities'.


Solution : Answer = Shown as outflow under 'Cash flows from investing activities'.

The purchase of intangible assets would be shown as an outflow under "Cash flows from investing activities" in the Cash Flow Statement because it represents an investment in assets that are not physical in nature and are expected to generate future economic benefits.
Hence, the correct option is 1.

Related Questions

Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
UPES | BBA Admissions 2025
Apply
#41 in NIRF, NAAC ‘A’ Grade | 100% Placement, up to 30% meritorious scholarships | Last Date to Apply: 28th Feb
MAHE Manipal M.Tech 2025
Apply
NAAC A++ Accredited | Accorded institution of Eminence by Govt. of India | NIRF Rank #4
Sanskriti University LLM Admi...
Apply
Best innovation and research-driven university of Uttar Pradesh
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books