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Investment in stocks is shown under cash flows from investing activities and this activity reduces the cash or it is said to be a cash outflow.
Operating activities
The statement of cash flows replaced the statement of changes in financial position in 1987 as a required financial statement for all publically traded business enterprises.
The Statement of Cash Flows includes three different types of cash flows:Operating,Investing, andFinancingInvesting cash flows involve investments in other companies or investments in long-lived assets. They include:Purchases of long-lived assets;Proceeds from selling long-lived assets;Purchases of investments in other companies; andProceeds from selling investments in other companies.
In the asset area
expenses
Operating Activities ;)
A statement of cash flows is also called a cash flow statement. The statement of cash flows is a cash basis report that shows the inflows and outflows of cash for the operating, investing and financing resources of a business.
increase or decrease in investment is shown in cash flow from investing activities.
a separate schedule
a noncash transaction which is not reported in the body of statement of cash flows
Statement of Cash Flows