- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 4. Analyzing Statements of Cash Flows I
- Subject 2. Classification of Cash Flows and Non-Cash Activities
CFA Practice Question
Which one of the following would be classified as an investing activity?
B. Selling equity investments
C. Issuing common stock
D. Purchase of inventory
A. Retirement of bonds payable
B. Selling equity investments
C. Issuing common stock
D. Purchase of inventory
Correct Answer: B
Both sales and purchases of equity investments are considered investing activities.
User Contributed Comments 12
| User | Comment |
|---|---|
| danlan | Sales and purchase of securities are investing, issuing securities are financing |
| teddajr | Sell/Purchase - Inveting, Issue - Financing. |
| mirfanrana | sales and purchase of securities are investing,issuing securities are financing |
| MattyBo | Purchase/sale of inventory is Operating |
| magicchip | This question is not bad at all. |
| nayagan | What is retirement of bonds payable? Operating? |
| udhay | Retirement of bond payable is CFF |
| johntan1979 | CFF CFI CFF CFO |
| Shaan23 | From last question that means. Selling Bonds is CFF Selling Equity is CFI |
| leon121 | How about treasury stock purchases? isn't that CFI? |
| Inaganti6 | I think CFF is only for changes in capital structure - paying/borrowing debt or adding equity |
| Inaganti6 | Selling equity ? let's be technically correct... I think selling equity INVESTMENTS is CFI and selling equity (as in issuing new shares) is CFF should've read the question twice it said selling equity INVESTMENTS as in shares in other companies |