Question

Where, if at all, is treasury stock purchased with cash classified on the statement of cash...

Where, if at all, is treasury stock purchased with cash classified on the statement of cash flows?

A. Financing activities section.

B. Does not represent a cash flow.

C. Investing activities section.

D. Operating activities section.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer is A. Financing activities section.

Treasury stock purchased with cash is classified in financing activities section. Treasury stock refers to repurchase of stock which has been issued earlier. Issuance of stock is shown as financing activities, so, repurchase of same stock is also classified as financing activities. Cash is paid for repurchase of stock and stock were issued to finance different projects. So, treasury stock purchased with cash is classified as financing activities on the statement of cash flows.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. The purchase of treasury stock will have what impact on the statement of cash flows?...
1. The purchase of treasury stock will have what impact on the statement of cash flows? A. Cash inflow from financing activities B. Cash outflow from financing activities C. Cash inflow from investing activities D. Cash outflow from investing activities 2. Cash inflows or outflows from investing activities would involve all of the following except: A. The proceeds from the sale of equipment B. The purchase of buildings C. The receipt of interest income on short-term investments D. The purchase...
1）In the statement of cash flows, in which section is the cash payment of salaries reported?...
1）In the statement of cash flows, in which section is the cash payment of salaries reported? A. Operating Activities B. Investing Activities C. Financing Activities D. Schedule of Noncash Transactions E. None of the above 2）In the statement of cash flows, in which section is the cash payment of dividends reported? A. Operating Activities B. Investing Activities C. Financing Activities 3）In the statement of cash flows, in which section is the cash receipt from the issuance of common stock reported?...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows...
A statement of Cash Flows contains the following sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities NOT affecting cash A list of items that appear on the Cash Flows Statement appear below: Using the letters (A-D), indicate in which section(s) of the statement of cash flows (or accompanying schedule) the preceding items would most likely be classified       -       A.       B.      ...
Which of the following statements is true? Investment in another company's common stock is classified as...
Which of the following statements is true? Investment in another company's common stock is classified as a cash outflow from financing activities in the statement of cash flows. Repayment of long-term debt is classified as a cash outflow from investing activities in the statement of cash flows. Losses on the sale of long-term assets are an adjustment reported in the operating activities section of the statement of cash flows under the indirect method. Dividends paid are classified as a cash...
The accountant for TI Company is preparing the company's statement of cash flows for the fiscal...
The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year 151,000 Cash dividends declared for the year 46,000 Net income for the year 92,000 16) What is the ending balance for retained earnings? A. 264,000 B. 13,000 C. 243,000 D. 197,000 E. 105,000 17) Noncash investing and financing activities may be disclosed in A. A notes in...
Which of the following methods of reporting cash flows provided by operating activities does the Financial...
Which of the following methods of reporting cash flows provided by operating activities does the Financial Accounting Standards Board recommend? A. The indirect method B. The direct method C. Either the indirect method or the direct method D. Neither the indirect method not the direct method In preparing cash flows provided by operating activities using the indirect method, which of the following is not deducted from net income? A. Decreases in current liability balances B. Increases in current asset balances...
Telfer Corp is a publicly listed company reporting under IFRS. For the issue of common shares...
Telfer Corp is a publicly listed company reporting under IFRS. For the issue of common shares in exchange for equipment, indicate where, if at all, the dollar value would be included in the calculations showing the change in cash on the statement of cash flows - Question 18 options: Operating activities section Investing activities section Financing activities section The transaction does not represent a cash flow and needs to be disclosed in the notes to the statement of cash flows.
Mach each cash flow to the section of the Statement of Cash Flows in which it...
Mach each cash flow to the section of the Statement of Cash Flows in which it would appear. Payment of Long-Term Debt Issuance of Stock to Acquire Land    Collection of Accounts Receivable .    Sale of Available-for-Sale Securities (Long Term) Payment of Employees' Wages Issuance of Common Stock for Cash Payment of Income Taxes Payable    Purchase of Equipment    Purchase of Treasury Stock (Common) 1. Cash Provided/Used by Financing Activities 2. Cash Provided/Used by Investing Activities 3. Cash...
In 2020, Malibu, Inc. issued notes payable to purchase land. In Malibu’s 2020 statement of cash...
In 2020, Malibu, Inc. issued notes payable to purchase land. In Malibu’s 2020 statement of cash flows, how would this transaction be classified? A. Cash flows from both investing and financing activities. B. Cash flow from investing activity only. C. Noncash investing and financing activity. D. Cash flow from financing activity only.
1. On an indirect method statement of cash flows, the purchase of machinery in exchange for...
1. On an indirect method statement of cash flows, the purchase of machinery in exchange for common shares is: Select one: a. ignored b. reflected in the investing activities section c. shown in the schedule of noncash investing and financing activities which accompanies the statement of cash flows d. reflected in the operating activities section Question 2. The statement of cash flows is designed to fulfill all of the following purposes except: Select one: a. to determine the company's ability...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT