When a company purchases a security it considers a cash equivalent, the cash outflow is:
A) Reported as an operating activity.
B) Reported as an investing activity.
C) Reported as a financing activity.
D) Not reported on a statement of cash flows.

Question

Quizplus · Accepted Answer

Cash equivalents are considered part of cash and are not reported separately on the statement of cash flows.

When a Company Purchases a Security It Considers a Cash