The purchase of treasury stock is classified in the statement of cash flows as a(n):
A)Operating activity.
B)Investing activity.
C)Financing activity.

Name: The purchase of treasury stock is classified in the statement of cash flows as a(n): A)Operating activity. B)Investing activity. C)Financing activity.
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Question

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The purchase of treasury stock is a financing activity because it involves the use of cash to buy back shares from shareholders, which reduces the equity portion of the balance sheet.

The Purchase of Treasury Stock Is Classified in the Statement