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    Question

    Which of the following is typically classified under

    investing activities in cash flow statement?
    A Cash received from customers Correct Answer Incorrect Answer
    B Purchase of plant and equipment Correct Answer Incorrect Answer
    C Proceeds from issue of shares Correct Answer Incorrect Answer
    D Interest paid on borrowings (financing or operating depending on policy) Correct Answer Incorrect Answer

    Solution

    Investing activities include the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Purchasing plant and equipment is a classic investing cash outflow.

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