Which of the following activities are included under investing activities in the Cash Flow Statement?

A. Cash receipts from disposal of fixed assets (including intangible)

B. Cash advances and loans made to third parties (other than advances and loans made by a financial enterprise)

C. Cash receipts from repayment of advances and loans made to third parties (other than advances and loans of a financial enterprise)

D. Cash repayments of the amount borrowed

E. Cash payments to suppliers for goods and services

Choose the correct answer from the options given below: 

The correct answer is A, B and C only.

Key Points

• The Investing activities in a Cash Flow Statement typically include transactions that involve long-term assets, including investments.
• Here, long-term assets can include things like buildings, machinery, equipment, investment in securities, etc.
• Let's see how the options fit:
  • Cash receipts from disposal of fixed assets (including intangible): This is an investing activity as it involves selling a long-term asset.
  • Cash advances and loans made to third parties (other than advances and loans made by a financial enterprise): This also counts as an investing activity as you're essentially investing in other businesses.
  • Cash receipts from repayment of advances and loans made to third parties (other than advances and loans of a financial enterprise): This too is an investing activity as it involves the recovery of cash from previous investments.
  • Cash repayments of the amount borrowed: This is a financing activity. Financing activities are transactions involving debt, equity, and dividends, not with investments.
  • Cash payments to suppliers for goods and services: This is considered an operational activity, as it pertains to the core operational transactions of a company.
• Hence, considering the stated options, the correct answer would be A, B and C only.