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STATEMENT OF CASH FLOWS

EEunice4y ago
30 September 20X3 30 September 20X2 Investments 50 0 The current asset investment was a 30-day government bond Good day sir, This entry was excluded from the investing activities in the cash flow statement .I'll appreciate if you can explain why it wasn't included as a purchase of government bond which is a cash outflow
P2-D2P2-D2Tutor3y ago#1
Hi, Government bonds are highly liquid assets and meet the definition of a cash equivalent. They would therefore be part of cash and cash equivalents at the bottom of the statement of cash flows. Thanks
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