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An investment in the stock of another company would appear in which of the following sections of the cash flow statement?

 a. Operating section

 b. Investing section

 c. Financing section

 d. It would not appear on the statement.

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Question added by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC
Date Posted: 2015/09/16
Ali Raza
by Ali Raza , Trainee Auditor , RIAZ & CO CHARTERED ACCOUNTANTS (INT Associate of Comprobase)

it should be recognisd in its investing section

Ramesh Potharla
by Ramesh Potharla , CHIEF ACCOUNTANT , AL MUQADIMAH TRADING LLC

Investing Section, as this is investment in another company stock

 

Ahmed Gawish
by Ahmed Gawish , Group CFO , MBF

D it wouldn't appear in the cash flow statement

tariq hussain
by tariq hussain , audit senior , Ministry Of Defence - Pakistan

appears in investing section of cash flow statement.

 

Rajan Mishra
by Rajan Mishra , Cost Accountant , Gulf Cable & Electrical Industries Co. KSC

Fortunately there is no dispute between US GAAP and IFRS on this.

Under both It would be classified under Investing Activity.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

investing section is the correct answer 

Thank you 

 

Anuj Gupta
by Anuj Gupta , Credit Controller , Atlas Printing Press LLC

The answer is B Investing Activities

IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

It comes under 'Cash from Investing' 

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

Of course

 b. Investing section

Ahmed Taha
by Ahmed Taha , Chief Accountant & Financial Auditor , DM Group

Should be come under cash flow from -----> b. Investing activities

Deleted user
by Deleted user

an investing activities is something that has to do with the changes in non current assests such as stocks .these activities will appear in the investing income so i will choose part (b).

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