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The Statement of Cash Flows includes three different types of cash flows:

  1. Operating,
  2. Investing, and
  3. Financing

Investing cash flows involve investments in other companies or investments in long-lived assets. They include:

  • Purchases of long-lived assets;
  • Proceeds from selling long-lived assets;
  • Purchases of investments in other companies; and
  • Proceeds from selling investments in other companies.
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Q: What describes the investing activities as shown in the statement of cash flows?
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Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.


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