For a non-financial enterprise, cash advances and loans given to third parties are not part of the main revenue-generating operating activity. They represent use of cash to acquire a financial asset (the right to receive repayment), and are therefore classified as cash outflow from investing activities.
Cash Advance and Loan made to third party (other than made by financial enterprise) is
CUET UG 2022 — Accountancy Financial Statements
2022mcqmedium
Cash Advance and Loan made to third party (other than made by financial enterprise) is
Official previous-year question
Held on 15 Jul 2022 · Verified 13 Jul 2026.
Options
- A
Outflow from Investing Activities
- B
Outflow from Financing Activities
- C
Inflow from Investing Activities
- D
Inflow from Financing Activities
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