The purchase of held-to-maturity investments would appear on a statement of cash flows in:

Question

Quizplus · Accepted Answer

Purchases of held-to-maturity investments are considered to be cash outflows for investing activities, as they involve the acquisition of long-term investments that are held for a specific period of time. Such investments are typically acquired by a company using cash generated from its operations or from external funding sources, such as loans or equity financing. Therefore, the purchase of held-to-maturity investments would be reported in the investing activities section of the statement of cash flows.

The Purchase of Held-To-Maturity Investments Would Appear on a Statement