Which of the following would be considered a cash inflow or outflow from investing activities?
A) Purchase of shares in another company
B) Payment of an overdue creditors account
C) Interim dividend declared and paid
D) Loan interest paid

Question

Quizplus · Accepted Answer

Purchase of shares in another company is a cash outflow from investing activities since it involves using cash to acquire an investment. Payment of an overdue creditors account and loan interest paid are cash outflows from operating activities, while interim dividend declared and paid is a cash outflow from financing activities.

Which of the Following Would Be Considered a Cash Inflow