- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 20. Understanding Cash Flow Statements
- Subject 1. Classification of Cash Flows and Non-Cash Activities
CFA Practice Question
Which of the following is not included in investing activities?
A. The sale of securities that are cash equivalents
B. Loaning money to another party, or the sale of corporate bonds that were held long-term
C. The purchase of common stock to be held long-term
Explanation: The sale of securities that are cash equivalents does not go in any of the three categories on the statement of cash flows. The sale of securities that are cash equivalents is simply considered a change in the form of cash the company holds.
User Contributed Comments 1
| User | Comment |
|---|---|
| chuong | Securities as equivalents is markettable securities |