Cash Advance and Loan made to a third party (other than made by a financial enterprise) is classified as:
- AOutflow from Investing Activities
- BOutflow from Financing Activities
- CInflow from Investing Activities
- DInflow from Financing Activities
Solution & Step-by-step Explanation
For non-financial enterprises, giving advances and loans to third parties is an deployment of funds outside core operations, which forms part of Investing Activities. Since cash leaves the business when creating a loan, it is a cash outflow from investing activities.