Purchases and sales of cash equivalents are reported as investing activities on a statement of cash flows.

Name: Purchases and sales of cash equivalents are reported as investing activities on a statement of cash flows.
Brand: Quizplus
Rating: 4.7 (46 reviews)

Question

Quizplus · Accepted Answer

Purchases and sales of cash equivalents are considered part of cash management and are therefore not reported as investing activities but are included in the cash and cash equivalents balances at the beginning and end of the period on a statement of cash flows.

Purchases and Sales of Cash Equivalents Are Reported as Investing