Asked by Collin Shaffer on Jun 14, 2024
Verified
The purchase and sale of investments not held for trading purposes is a(n)
A) operating activities.
B) investing activities.
C) financing activities.
D) non-cash activities.
Trading Purposes
Activities conducted with the objective of profiting from short-term fluctuations in market prices.
Investing Activities
Transactions and events related to the acquisition and disposal of long-term assets and other investments, reflected in a company's cash flow statement.
Purchase And Sale
Purchase and sale refer to the process of acquiring goods or services (purchase) and then offering them for consumption or usage by others (sale), serving as the fundamental activity of any commercial business.
- Clarify the differences among operating, investing, and financing activities within the cash flow statement.
Verified Answer
Learning Objectives
- Clarify the differences among operating, investing, and financing activities within the cash flow statement.
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