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    Question

    The aggregate cash flows arising from obtaining or

    losing control of subsidiaries or other businesses should be classified as:
    A Operating Activity Correct Answer Incorrect Answer
    B Investing Activity Correct Answer Incorrect Answer
    C Financing Activity Correct Answer Incorrect Answer
    D Equity Activity Correct Answer Incorrect Answer
    E Non-cash Activity Correct Answer Incorrect Answer

    Solution

    Cash flows related to obtaining or losing control of subsidiaries or other businesses are classified under Investing Activities in the cash flow statement. This classification reflects the nature of these transactions as investments in the acquisition or disposal of business interests

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