Royer Corporation engaged in this transaction:
Purchased one-year insurance policy for cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Financing activities section
B) Does not represent a cash flow
C) Investing activities section
D) Operating activities section

Question

Royer Corporation engaged in this transaction:
 Purchased one-year insurance policy for cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Financing activities section
B) Does not represent a cash flow
C) Investing activities section
D) Operating activities section

Quizplus · Accepted Answer

The transaction involves purchasing an insurance policy for cash, which falls under operating activities section of the statement of cash flows.

Royer Corporation Engaged in This Transaction