Mends policy is to treat as cash equivalents all highly


Mend Co. purchased a three-month US Treasury bill. Mend's policy is to treat as cash equivalents all highly liquid investments with an original maturity of three months or less when purchased. How should this purchase be reported in Mend's statement of cash flows?

a. As an outflow from operating activities.

b. As an outflow from investing activities.

c. As an outflow from financing activities.

d. Not reported.

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Cost Accounting: Mends policy is to treat as cash equivalents all highly
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