The Purchase of Treasury Stock Is

question 106

Multiple Choice

The purchase of treasury stock is:

• A)Reported as a financing activity in the statement of cash flows.
• B)Reported as an investing activity in the statement of cash flows.
• C)Reported as an operating activity in the statement of cash flows.
• D)None of these answer choices is correct.

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Definitions:

Novation

The substitution of parties to an agreement, or the replacement of one agreement by another agreement.

Valid Tender

An offer of payment for goods or services that, by law, cannot be refused by the creditor if the debtor intends to discharge the debt.

Tender Of Payment

is an offer to pay a debt or obligation, specifically in a form that is legally recognized and acceptable.

Exact Amount

Specifies a precise figure or quantity, leaving no room for deviation or approximation.