A company has surplus cash available and decides to purchase a 120-day treasury bill.The correct classification of the purchase on the Statement of Cash Flows would be
A)as an net change in cash equivalents.
B)as a cash outflow in operating activities.
C)as a cash outflow in investing activities.
D)as a cash outflow in financing activities.

Question

Quizplus · Accepted Answer

Treasury bills are considered short-term investments and therefore classified as an investing activity on the Statement of Cash Flows.

A Company Has Surplus Cash Available and Decides to Purchase