[ISC] Q. 6 Cash Flow Statement Solution TS Grewal Class 12 (2026-27)
Solution of Question number 6 of the Cash Flow Statement of TS Grewal Book 2026-27 session ISC Board?
(i) Give one example of an activity which is classified as Operating Activity in cash of all enterprises.
(ii) Give one example of an activity which is classified as investing activity in case of all enterprises
(iii) Give one example of an activity which is classified as Financing Activity in case of all enterprises.
Solution:-
(i) Give one example of an activity which is classified as Operating Activity in case of all enterprises.
Example: Wages and Salaries paid to employees (or Office/Administrative expenses).
Reason: Every business enterprise, whether financial or non-financial, requires human resource management and daily administrative support to run its basic organizational structure and core operations.
(ii) Give one example of an activity which is classified as investing activity in case of all enterprises.
Example: Purchase of Fixed Assets (such as Machinery, Furniture, or Land/Buildings).
Reason: Every enterprise needs non-current physical infrastructure to establish and sustain its operations, making the acquisition of productive long-term assets a universal investing outflow.
(iii) Give one example of an activity which is classified as Financing Activity in case of all enterprises.
Example: Proceeds from Issue of Shares (or Dividend Paid to shareholders).
Reason: Regardless of the nature of business, every company raises its permanent owner’s equity capital in the same manner, altering its core capital structure uniformly across all industries.
