In 2009, Krane Company purchases $75,000 of U.S. Treasury bills. This purchase would be reported on Krane Company's 2009 statement of cash flows as:

Question

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The purchase of U.S. Treasury bills is considered an investing activity as it involves the acquisition of a financial asset that generates return in the form of interest. It does not involve obtaining or repaying funds from creditors or investors (financing activity) or the day-to-day operations of the business (operating activity).

In 2009, Krane Company Purchases $75,000 of U