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  In the statement of cash flows, Inflows and outflows of cash from buying and selling...

 

In the statement of cash flows, Inflows and outflows of cash from buying and selling trading securities typically are considered:
Multiple Choice
  • Investing activities.
  • Operating activities.
  • Financing activities
  • Noncash financing activities.
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Answer #1

Trading securities or marketable securities are part of current assets in the balance sheet. Any gain or loss in selling of such securities is shown under the heading of income from operations. In cash flow statements any inflow or outflow of cash shall be shown under cash flow from operating activities since it is not an investment rather an operating item.

So Option B is answer

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