Asked by Patrick Alves on Jun 12, 2024
Verified
Cash flows from investing activities, as part of the statement of cash flows, would include any payments for the purchase of treasury stock.
Treasury Stock
Refers to shares that were once outstanding but have been repurchased by the corporation and are held in its own treasury.
Investing Activities
Transactions involving the acquisition or disposal of long-term assets and other investments, a component of a company's cash flow statement.
- Ascertain the variances in cash flows emanating from operating, investing, and financing activities.
Verified Answer
ZK
Zybrea KnightJun 12, 2024
Final Answer :
False
Explanation :
Payments for the purchase of treasury stock are considered financing activities, not investing activities, in the statement of cash flows.
Learning Objectives
- Ascertain the variances in cash flows emanating from operating, investing, and financing activities.