The purpose of holding a cash equivalent is irrelevant for the classification in the statement of cash flows.

Name: The purpose of holding a cash equivalent is irrelevant for the classification in the statement of cash flows.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

The purpose of holding a cash equivalent is relevant for its classification in the statement of cash flows because it determines how the cash flows are presented (operating, investing, or financing activities).

The Purpose of Holding a Cash Equivalent Is Irrelevant for the Classification