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Investing activities include all of the following except: Select one or more: a. Sale of available-for-sale...

Investing activities include all of the following except: Select one or more: a. Sale of available-for-sale and held-to-maturity securities. b. Collection of loans. c. Making of loans. d. Payment of debt

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Answer #1

Correct option is "D"

Cash flow from investing activity includes Cash inflow or outflow from sale or purchase of long term asset including any income accrued thereon . Such as Purchase of land ,Dividend revenue ,Making of loans ,Sale or purchase of long term investment etc .

Sale of available-for-sale and held-to-maturity securities Cash inflow from Investing activity
Collection of loans Cash inflow from investing activity
Making of loan Cash outflow from investing activity
Payment of Debt

Cash outflow from financing activity

Payment of debt is a repayment of long term liability which is considered as part of Financing section

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