Investing Activities Homework Help

Investing Activities

The investing activities relate to the acquisition and disposal or long-term assets and other investments not included in cash-equivalents. Their separate disclosure is is important as they represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. The principal items covered under this category of activities are as follows:

Cash payment to acquire fixed assets (including intangibles). These payments include those relating to capitalized research and development costs and self-constructed fixed assets.

Cash receipts from disposal of fixed assets (including intangibles).

Cash payments to acquire shares, warrant, or debt instruments of other enterprises and interests in joint ventures.

Cash receipts from disposal of shares, warrants or debt instruments of other enterprises and interests in joint ventures.

Cash advances and loans made to third parties.

Cash receipts from the repayment of advances and loans made to third parties.

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