Cash Flows

This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
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: 7235
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
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.