Question

Cash flow example from an operating activity is ______.

Options

• Purchase of Own Debenture

• Sale of Fixed Assets

• Interest Paid on Term Deposits by a Bank

• Issue of Equity Share Capital

Answer 1

Cash flow example from an operating activity is Interest Paid on Term Deposits by a Bank.

Explanation:

When producing a Cash Flow Statement, interest paid on term deposits by a bank is considered an operating activity.