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Cash Flows

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Cash Flows

Viewing 2 posts - 1 through 2 (of 2 total)
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  • April 10, 2021 at 9:51 am #616643
    shah19888888
    Participant
    • Topics: 20
    • Replies: 10
    • ☆

    Hi Sir,

    I had a question regarding cash flows.

    Say there was an purchase of an bond which is classed as ‘cash equivalent’, where would it fall in the cash flow statement?

    Would it be financing activities?

    Regards

    April 17, 2021 at 8:30 am #617983
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    If it was a cash equivalent then it would form part of cash and cash equivalents at the end of the year but it would also be seen as a cash outflow as part of investing activities. Financing activities would be for issuing bonds or shares.

    Thanks

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