A Company Has Surplus Cash Available and Decides to Purchase

question 2

Multiple Choice

A company has surplus cash available and decides to purchase a 270-day treasury bill. The correct classification of the purchase on the Statement of Cash Flows would be

• A) as an Net change in cash equivalents.
• B) as a cash outflow in operating activities.
• C) as a cash outflow in investing activities.
• D) as a cash outflow in financing activities.

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Definitions:

Disease

A disorder or malfunction of the mind or body that results in significant symptoms, impacting an individual's normal functioning or well-being.

Hernando De Soto

A 16th-century Spanish explorer and conquistador known for his expeditions in the Americas, particularly in the Southeastern United States.

Southern North America

Describes regions located in the southern part of the North American continent, often characterized by diverse climates and ecosystems.

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One of the 23 pairs of chromosomes in humans, which carries genes associated with a variety of conditions and traits, including cystic fibrosis.