Question

Cash flow from assets is cash generated from

1)operating activities

2)investing activities

3)all of the activities.

4)financing activities

5)production activities

Answer 1

2)investing activities

There are three activities in a Statement of Cash Flow:

(i) Operating Activities

(ii) Investing Activities and

(iii) Financing Activities

Operating activities shows the cash flow from the operation of entity. For example, If operation of company is selling electronic items then cash flow from operation will be cash flow from selling electronic items.

Investing activities shows the cash flow from investment of company like Investment in assets, Investment in Shares , Investment in Land, buiding etc.

Third and last financing activities shows the cash flow from financing like raising funds from issuance of bonds, repayment of loan etc.

So, cash flow from asset is cash generated from Investing Activities.