The Purchase of Treasury Stock Would Be Reported on a Statement

question 134

Multiple Choice

The purchase of treasury stock would be reported on a statement of cash flows as a:

• A)cash outflow under the financing activities.
• B)cash inflow under the investment activities.
• C)cash inflow under the operating activities.
• D)cash outflow under the investment activities.

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Definitions:

Current Ratio

A financial ratio indicating a firm's capacity to cover its short-term liabilities with its current assets.

Financial Data

Information about financial transactions, including revenues, expenses, assets, and liabilities, used to analyze the financial health of a business.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets, excluding inventory.

Financial Data

Information related to the financial status of an individual or organization, including income, expenses, assets, and liabilities.