Investing example sentences
Transactions related to long-term investment are also investing activities.It simply earns an income by investing in shares, bonds, bills, or notes in a foreign country or providing loans to foreign business firms.The primary objective of cash flow statement is to provide useful information about cash flows (inflows and outflows) of an enterprise during a particular period under various heads, i.e. operating activities, investing activities and financing activities.The details of item leading inflows and outflows from investing and financing activities have already been outlined.For example, when the instalment paid in respect of a fixed asset acquired on deferred payment basis includes both interest and loan, the interest element is classified under financing activities and the loan element is classified under investing activities.As a result these companies were discouraged from investing in our country.This also encourages people to send their children, including the girl child, to schools in the hope of getting better economic returns from investing in education.Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc.We also take note that goods can also be bought for making investments and these add to the productive capacity of the investing firms.As per AS-3, investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.As per AS 3, cash flows exclude movements between items that constitute cash or cash equivalents because these components are part of the cash management of an enterprise rather than part of its operating, investing of financing activities.As per AS-3, investing and financing transactions that do not require the use of cash or cash equivalents should be excluded from a cash flow statement.For example, purchase of shares is an operating activity for a share brokerage firm while it is investing activity in case of other enterprises.It realised that by investing more and more in these countries, especially in social sectors like health and education; it could bring about the needed social and economic transformation of the developing countries.These are the principal revenue producing activities (or the main activities) of the enterprise and other activities that are not investing or financing activities.
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