Cash Advance and Loan made to third party (other than made by financial enterprise) is
Cash Advance and Loan made to third party (other than made by financial enterprise) is
Solution
✅ Correct Option: 1
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.
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2025: 2 June Shift 2