The resale of treasury stock is classified as a cash inflow from financing activities.

Question

Quizplus · Accepted Answer

The resale of treasury stock is considered a financing activity because it involves transactions between the company and its investors (in this case, buying back and reselling its own stock). As such, any cash received from the resale of treasury stock is considered a cash inflow from financing activities on the company's statement of cash flows.

The Resale of Treasury Stock Is Classified as a Cash