Acquisitions of treasury stock would be reported on a statement of cash flows as:
A)operating activities.
B)investing activities.
C)financing activities.
D)noncash investing and financing activities.

Question

Quizplus · Accepted Answer

Acquisitions of treasury stock are a form of financing activity since they involve a company's use of its financial resources to buy back its own shares. Consequently, the cash flows resulting from treasury stock purchases should be reported as a financing activity on the statement of cash flows.

Acquisitions of Treasury Stock Would Be Reported on a Statement