On the statement of cash flows,a hybrid financial instrument should be:
A) Reported as an operating activity
B) Reported as a financial activity
C) Reported as an investing activity
D) Reported according to its individual components

Question

Quizplus · Accepted Answer

Hybrid financial instruments should be reported according to their individual components, as they may have characteristics of both debt and equity, affecting different sections of the cash flow statement.

On the Statement of Cash Flows,a Hybrid Financial Instrument Should