The sale of repurchased shares is a(n) _ on a statement of cash flows.

Question

Quizplus · Accepted Answer

The sale of repurchased shares can be considered a financing activity because it involves the company using its cash to buy back its own shares, which reduces the number of outstanding shares and increases the value of the remaining shares. When the company subsequently sells these repurchased shares, it is simply reversing this financing activity by generating cash from the sale of the shares. Therefore, the sale of repurchased shares should be reported as a financing activity on the statement of cash flows.

The Sale of Repurchased Shares Is A(n) _ on a Statement