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:

Condensed Structure

A method of writing a structural formula of a molecule that shows the arrangement of atoms without drawing all bonds explicitly.

Conjugate Acid

A species formed by the reception of a proton (H⁺) by a base, in the context of Bronsted-Lowry acid-base theory.

Ethanamine

An organic chemical compound, also known as ethylamine, with the formula CH3CH2NH2, classified as a primary amine.

Conjugate Base

The species that remains after an acid has donated a proton, often able to react by accepting a proton.