Why does the purchase of an item classified as a cash equivalent not appear on the statement

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Why does the purchase of an item classified as a cash equivalent not appear on the statement of cash flows as an investing activity?

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jan 12, 2012 03:10 AM

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Why does the purchase of an item classified as a cash equivalent not appear on the statement

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A cash equivalent is convertible to a known amount of cash Therefore the purchas...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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