Asked by Ishmail Mgwena on Jun 04, 2024
Verified
The purchase of equity securities is classified as a financing activity.
Financing Activity
Transactions related to a company’s financing efforts, including issuing debt, obtaining loans, or issuing shares of stock.
- Categorize different cash flows as operating, investing, or financing activities.
Verified Answer
BB
Brent BingamanJun 10, 2024
Final Answer :
False
Explanation :
The purchase of equity securities is typically classified as an investing activity in the statement of cash flows, not a financing activity. Financing activities involve transactions related to the company's own equity and debt.
Learning Objectives
- Categorize different cash flows as operating, investing, or financing activities.
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