In a statement of cash flows, payments to acquire debt instruments of other entities would typically be classified as cash outflows for
A) financing activities.
B) investing activities.
C) operating activities.
D) equity activities.

Question

Quizplus · Accepted Answer

Payments to acquire debt instruments of other entities are typically classified as cash outflows for investing activities, as the purchase of debt instruments is considered an investment in another entity's debt.

In a Statement of Cash Flows, Payments to Acquire Debt