The Purchase of Treasury Stock Will Appear on the Statement

question 88

Multiple Choice

The purchase of treasury stock will appear on the statement of cash flows as a:

• A) positive amount in the financing activities section.
• B) negative amount in the financing activities section.
• C) positive amount in the investing activities section.
• D) negative amount in the investing activities section.

---

Definitions:

Conditional Sale

A sales agreement that includes conditions that must be met before the sale is final and the property is transferred to the buyer.

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time.

Nominal Interest

The interest rate stated on a loan or investment agreement before the adjustment for inflation.

Effective Rate

The effective rate is the actual interest rate on an investment or loan, taking into account the compounding of interest, as opposed to the nominal or stated rate.