On the cash flow statement,the purchase and sale of bonds of other companies to be held for an extended time are reported as:

Question

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Purchase and sale of bonds of other companies to be held for an extended time are considered as investing activities because they involve the acquisition and disposal of long-term assets held for investment purposes. Operating activities pertain to the company's core business operations, while financing activities involve raising and repaying funds. These transactions would be reflected in the cash flow statement as cash inflows or outflows from investing activities.

On the Cash Flow Statement,the Purchase and Sale of Bonds