Purchase of fixed assets will result in cash from investing activities.

inflow

No worries! We‘ve got your back. Try BYJU‘S free classes today!

outflow

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

disbursement

No worries! We‘ve got your back. Try BYJU‘S free classes today!

distribution

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B outflow
An increase in capital expenditures means the company is investing in future operations; however, it also points to a reduction in cash flow. Examples of negative cash flow from investing activities include the purchase of fixed assets, the purchase of investment instruments (e.g., stocks), and lending money.

Suggest Corrections

Similar questions

Purchase of fixed assets will result in cash ___ from investing activities.

Purchase of fixed assets is ___ while calculating cash flow from investing activities.

Sale of fixed assets is ___ while calculating cash flow from investing activities.

Join BYJU'S Learning Program