The Purchases of Available-For-Sale Investments Would Appear on a Statement

question 51

Multiple Choice

The purchases of available-for-sale investments would appear on a statement of cash flows in:

• A) the financing activities section.
• B) the operating activities section.
• C) the investing activities section.
• D) none of the above. The purchase would not appear on a statement of cash flows.

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Definitions:

Bank Service Charges

Fees charged by banks for various services such as account maintenance, transactions, or overdrafts.

Bank Reconciliation

A process that explains the difference between the bank balance shown in an entity's bank statement, as supplied by the bank, and the corresponding amount shown in the entity's own accounting records at a particular point in time.

Bank Interest

Interest charged by banks on loans or earned on savings accounts and other investments.

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company's bank statement with the balance in its own records.