Cash flows from purchases,sales,and maturities of investments are usually classified as operating activities.

Question

Quizplus · Accepted Answer

Cash flows from purchases, sales, and maturities of investments are typically classified as investing activities instead of operating activities. Operating activities involve cash flows related to a company's primary business operations, such as revenue, expenses, and working capital. Investing activities involve cash flows related to the purchase or sale of long-term assets, such as investments in securities, property, plant, and equipment.

Cash Flows from Purchases,sales,and Maturities of Investments Are Usually Classified