What Are Investing Activities?

Investment activities refer to the purchase and construction of long-term assets of an enterprise and investment and disposal activities that are not included in cash equivalents. Long-term assets refer to fixed assets, construction in progress, intangible assets, other assets, and assets with a holding period of one year or more than one business cycle. It should be noted that investment and investment activities are two different concepts. Investment is another asset obtained by a company by transferring assets to other units in order to increase wealth through distribution or to seek other benefits. It is divided into short-term investment and long-term investment. ^[1]

Investment activity

discuss

Investment activities refer to the purchase and construction of long-term assets of an enterprise and investment and disposal activities that are not included in cash equivalents. Long-term assets refer to fixed assets, construction in progress, intangible assets, other assets, and assets with a holding period of one year or more than one business cycle. It should be noted that investment and investment activities are two different concepts. Investment is another asset obtained by a company by transferring assets to other units in order to increase wealth through distribution or to seek other benefits. It is divided into short-term investment and long-term investment. ^[1]

It refers to the purchase and construction of long-term assets of an enterprise and the investment and disposal activities that are not included in the scope of cash equivalents.

Chinese name

Investment activity

Object

enterprise

Solid

An investment and its disposal activities

Including

Physical asset investment

definition

Long-term assets refer to assets with fixed maturity, intangible assets, construction in progress, and other assets with a holding period of more than one year or one business cycle. The investment activities mentioned here include both physical asset investment and financial asset investment. The reason why investments included in the scope of cash equivalents is excluded here is that investments included in the scope of cash equivalents have been treated as cash. Different enterprises have different recognition of investment activities due to different industry characteristics. For example, the cash flow generated by transactional financial assets belongs to the cash flow of investment activities for industrial and commercial enterprises, and to the cash flow of operating activities for securities companies.