The purchase of treasury stock would be reported on a statement of cash flows as a:
A)cash outflow under the financing activities.
B)cash inflow under the investment activities.
C)cash inflow under the operating activities.
D)cash outflow under the investment activities.

Question

Quizplus · Accepted Answer

The purchase of treasury stock is considered a financing activity because it involves transactions related to the company's own equity. It results in a cash outflow as the company uses cash to buy back its own shares.

The Purchase of Treasury Stock Would Be Reported on a Statement