Question

In: Accounting

Jackson corporation bought debt securities that it intends to hold as short-term investments. This purchase should...

Jackson corporation bought debt securities that it intends to hold as short-term investments. This purchase should be classified on Rail’s statement of cash flows as a

A-) operating cash inflow

B-) financing cash inflow

C-) operating cash outflow

D-) financing cash outflow

E-) investing cash outflow

Solutions

Expert Solution

Short term investments are done not for the purpose of real investment but to park the surplus cash . And since debt securities are tradable securities so cash used in purchasing them will be regarded as operating cash ouflow..

Hence option c is correct

ekkarill92 answered 2 years ago
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