In preparing a statement of cash flows, an increase in the Share Capital and Treasury Shares accounts during a period would be an investing activity.

Question

Quizplus · Accepted Answer

An increase in Share Capital would be a financing activity and an increase in Treasury Shares would be a financing or operating activity, depending on the reason for the purchase. Both would not be considered investing activities in the statement of cash flows.

In Preparing a Statement of Cash Flows, an Increase in the Share