Capital gain tax is directly related to the sale of a fixed asset, which is an investing activity. Therefore, the tax paid on such capital gain is classified along with the related activity as a Cash outflow from Investing Activities.
Capital gain tax paid on sale of fixed assets should be classified as
CUET UG 2023 — Accountancy Financial Statements
2023mcqmedium
Capital gain tax paid on sale of fixed assets should be classified as _______
Official previous-year question
Held on 29 May 2023 · Verified 13 Jul 2026.
Options
- A
Cash inflow from Operating Activities
- B
Cash outflow from Operating Activities
- C
Cash inflow from Investing Activities
- D
Cash outflow from Investing Activities
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