Royer Corporation engaged in this transaction: Purchased 30-day U.S. Treasury bill.
Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows.
A) Does not represent a cash flow
B) Operating activities section
C) Investing activities section
D) Financing activities section

Question

Quizplus · Accepted Answer

Purchasing a 30-day U.S. Treasury bill is considered a cash equivalent, not a cash flow, as it is a short-term, highly liquid investment.

Royer Corporation Engaged in This Transaction: Purchased 30-Day U