Bamberg Corporation purchased a 60-day commercial paper.Indicate which section,if any,this transaction would appear in,or relate to,on a statement of cash flows.

Name: Bamberg Corporation purchased a 60-day commercial paper.Indicate which section,if any,this transaction would appear in,or relate to,on a statement of cash flows.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

Commercial paper is considered a cash equivalent, and purchasing it does not affect the cash flow statement as it is simply a conversion of one form of cash to another.

Bamberg Corporation Purchased a 60-Day Commercial Paper