Multiple choice

While preparing cash flow statements, the capital gain tax on sale of land shall be reduced from

  1. cash flows generated from operating activities

  2. cash flows generated from investing activities

  3. cash flows generated from financing activities

  4. <span style="font-family:" arial;="" font-size:="" small;="">cash flows generated from non-operating activities
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

While preparing cash flow statements, the capital gain tax on sale of land shall be reduced from the cash flows from investing activities as per AS - 2 “Cash Flow Statements”.

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