Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

The owners of X Company invested $2,000 in the company. X Company used the cash to invest in Y Company.?

 On X’s statement of cash flows these transactions would be classified, respectively, as:

a. an operating activity and an investing activity.

b. a financing activity and an operating activity.

c. an investing activity and an investing activity.

d. a financing activity and an investing activity.

user-image
Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/02
Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

D----------------------------------------------

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes - Option D is the right answer.

mehfooz alam khan habib khan
by mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

D...........,,,,,,,,,,,,,,........,,,,,,,,,

Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

d. a financing activity and an investing activity.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

option d=====================

Iftikhar Hussain Shah
by Iftikhar Hussain Shah , Senior Manager Audit & Assurance , Deloitte LLP

Answer is option D...........

Capital of owner's is financing and investment in other company is investing. ...

Ahmed Hassanin CMA
by Ahmed Hassanin CMA , Financial Planning and Controlling Manager , Methode Electronics

>>>>>>>>>>>>>>>>>>>>>>>>>> D

Mustafa Haider
by Mustafa Haider , Assistant Manager Accounts , Kamal Hosiery Mill

answer A seems to be corrected..that "an operating activity and an investing activity."

Deleted user
by Deleted user

option d is my answer,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Umer Sharif
by Umer Sharif , Head Of Accounts Dept , Allied Petroleum Pvt Ltd

D.......................................

More Questions Like This