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In what circumstances the sale of Treasury securities can be considered an operating activity? Please provide some examples of companies that engage in the purchase
- In what circumstances the sale of Treasury securities can be considered an operating activity?
- Please provide some examples of companies that engage in the purchase and sale of Treasury securities as part of their routine operations?
- What factors would auditors and accounting experts consider when determining whether such transactions should be classified as operating activities?
- What are the potential consequences for businesses that misclassify transactions, particularly when it comes to estimating liquidity and cash generation capacity?
- What steps can companies take to ensure that their cash flow statements accurately reflect their financial activities?
Reference: Chapters 3 and 4 of Ross, et al (2022) textbook.
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