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 investing activities.
C)cash inflow under the operating activities.
D)cash outflow under the investing activities.

Question

Quizplus · Accepted Answer

The purchase of treasury stock is considered a financing activity because it involves the company's own equity. Therefore, it is reported as a cash outflow under the financing activities section of the statement of cash flows.

The Purchase of Treasury Stock Would Be Reported on a Statement