Use the following information for questions
Ingles Corp., a private company reporting under ASPE, engaged in the following transactions.For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-Purchase of another company's common shares on the open market:
A)operating activities section
B)investing activities section
C)financing activities section
D)does not represent a cash flow

Question

Use the following information for questions 
Ingles Corp., a private company reporting under ASPE, engaged in the following transactions.For each transaction, indicate where, if at all, it would be classified on the statement of cash flows.
-Purchase of another company's common shares on the open market:
A)operating activities section
B)investing activities section
C)financing activities section
D)does not represent a cash flow

Quizplus · Accepted Answer

Purchasing another company's common shares on the open market is considered an investment activity, thus it is classified in the investing activities section of the statement of cash flows.

Use the Following Information for Questions