The purchase or sale of marketable securities is reported in the statement of cash flows as...
The purchase or sale of marketable securities is reported in the statement of cash flows as a financing activity.
True or False
Homework Answers
--The statement is FALSE.
--Financing Activity sections deals ONLY with cash inflows and
cash outflows relating to source of finance, like
>cash transaction relating to issuance of common/preferred
stock
>cash issuance of Bonds Payable
>dividend paid to stockholders
>cash received from bank loan
>repayment of loans
>redemption of Bonds, etc.
--Purchase and sale of marketable securities is more of an Investing activity related.
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