Royer Corporation engaged in this transaction: Purchased treasury stock with cash.
Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase of treasury stock with cash is a financing activity, as it involves using cash to buy back shares from investors, which reduces the amount of outstanding shares and increases the ownership percentage of the remaining shareholders. Therefore, it would appear in the financing activities section of a statement of cash flows.

Royer Corporation Engaged in This Transaction: Purchased Treasury Stock with Cash