The investment in stock of another company is considered a significant activity and thus is reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

Investing activities, which include the purchase and sale of long-term assets such as stocks, are reported on the statement of cash flows. Therefore, the investment in stock of another company would be considered a significant activity and would be reported on the statement of cash flows.

The Investment in Stock of Another Company Is Considered a Significant