In a statement of cash flows, payments to acquire debt instruments of other entities (other than cash equivalents) should be classified as cash outflows for
A) operating activities.
B) investing activities.
C) financing activities.
D) lending activities.

Question

Quizplus · Accepted Answer

Payments to acquire debt instruments of other entities represent investments made by the company and should be classified as cash outflows for investing activities.

In a Statement of Cash Flows, Payments to Acquire Debt