The purchase of treasury stock is:
A) Reported as a financing activity in the statement of cash flows.
B) Reported as an investing activity in the statement of cash flows.
C) Reported as an operating activity in the statement of cash flows.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The purchase of treasury stock is classified as a financing activity because it involves the company buying back its own shares from the marketplace, which directly impacts shareholders' equity and is related to the financing of the company.

The Purchase of Treasury Stock Is