Purchases 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

Treasury stock refers to the repurchase of shares previously sold to the public, which is a financing activity that reduces the amount of equity available to shareholders. Therefore, purchases of treasury stock are reported on the statement of cash flows as financing activities.

Purchases of Treasury Stock Would Be Reported on a Statement