Purchases of Marketable Securities Are Not Considered to Be Cash

question 44

True/False

Purchases of marketable securities are not considered to be cash used by investments on the statement of cash flows.

Describe types and characteristics of shares in a corporation.

Explain the rights and responsibilities of shareholders and directors in a corporation.

Detail the process for issuing shares and managing shareholders' equity.

Prepare and interpret journal entries related to share transactions and dividends.

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Definitions:

Treasury Stock

Shares that were once in circulation and have been bought back by the issuing company, reducing the amount of outstanding stock.

Significant Noncash Transactions

Financial activities that do not involve cash flows but significantly affect the financial position of a company.

Treasury Stock Acquisition

The purchase of a company's own shares from the marketplace, reducing the amount of outstanding stock.

Bond Issuance

The process of selling bonds to investors in order to raise capital.