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
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Cash Flows
5y ago#1Hi,
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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