Purchases and Sales of Securities Are Always Reported as Investing

question 123

True/False

Purchases and sales of securities are always reported as investing activities in a statement of cash flows.

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Definitions:

Private Good

a category of goods that are excludable and rival in consumption, meaning that access can be restricted and one person's consumption prevents another's.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Outdoor Pets

Domestic animals such as dogs and cats that are suitable for living outside in a safe environment.