When a company sells its treasury stock,it creates a cash inflow from an investing activity because treasury stock is an investment asset on the balance sheet.

Question

Quizplus · Accepted Answer

Selling treasury stock is considered a financing activity, not an investing activity, because treasury stock represents the repurchase of a company's own shares, impacting equity rather than being an investment in another entity's securities.

When a Company Sells Its Treasury Stock,it Creates a Cash