When a Company Purchases a Security It Considers a Cash

question 128

Multiple Choice

When a company purchases a security it considers a cash equivalent, the cash outflow is:

• A) Reported as an operating activity.
• B) Reported as an investing activity.
• C) Reported as a financing activity.
• D) Not reported on a statement of cash flows.

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Definitions:

TANF

Temporary Assistance for Needy Families, a federal assistance program in the United States designed to help needy families achieve self-sufficiency.

Welfare Rolls

Lists or records of individuals receiving government assistance, typically in the form of cash or food support.

Supplemental Nutrition Assistance Program

The Supplemental Nutrition Assistance Program (SNAP) is a federal assistance program in the United States that provides food-purchasing assistance for low- and no-income people.