‘An enterprise may hold securities and loans for dealing or trading purposes in which case they are similar to inventory acquired specifically for resale’. Is the statement correct? Cash flows from such activities will be classified under which type of activity while preparing Cash Flow Statement? (C.B.S.E. 2016)

‘An enterprise may hold securities and loans for dealing or trading purposes in which case they are similar to inventory acquired specifically for resale’. Is the statement correct? Cash flows from such activities will be classified under which type of activity while preparing Cash Flow Statement? (C.B.S.E. 2016)

Post category:Accountancy
Reading time:1 mins read

SOLUTION

Yes, the statement is correct in case of financial enterprises. Cash Flow from such activity will be classified as Operating Activity.

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