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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What are cash flows from investing activities?
💡 Hint: Consider what types of transactions are included.
Question 2
Easy
Give an example of a fixed asset.
💡 Hint: Think of assets used for operations.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is included in cash flow from investing activities?
- Sales of goods
- Purchase of fixed assets
- Interest paid
💡 Hint: Focus on the transactions related to long-term assets.
Question 2
True or False: Cash received from selling investments is a cash inflow from investing activities.
- True
- False
💡 Hint: Think about how sales impact cash flow.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company invests ₹1,000,000 in machinery. It also sells an old machine for ₹300,000. After one year, it earns ₹25,000 from dividends. Calculate the net cash flow from investing activities.
💡 Hint: Separate inflows and outflows to find net cash flow.
Question 2
Illustrate how a company decides on allocating cash for new projects based on cash flow from investing activities. Discuss possible implications of this decision.
💡 Hint: Consider the strategic impact of investment decisions.
Challenge and get performance evaluation