B is corrent. Per ASC Topic 230, investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment. Per ASC Topic 230, cash flows from transactions in held-to-maturity and available-for-sale securities are to be classified as cash flows from investing activities. Conversely, amounts related to securities held for trading are classified as operating activities.
A is incorrect. Making payments to acquire debt instruments of other entities is not a financing activity. Per ASC Topic 230, investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment. Per ASC Topic 230, cash flows from transactions in held-to-maturity and available-for-sale securities are to be classified as cash flows from investing activities. Conversely, amounts related to securities held for trading are classified as operating activities.
C is incorrect. Making payments to acquire debt instruments of other entities is not an operating activity. Per ASC Topic 230, investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment. Per ASC Topic 230, cash flows from transactions in held-to-maturity and available-for-sale securities are to be classified as cash flows from investing activities. Conversely, amounts related to securities held for trading are classified as operating activities.
D is incorrect. Making payments to acquire debt instruments of other entities is not a lending activity. Per ASC Topic 230, investing activities include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment. Per ASC Topic 230, cash flows from transactions in held-to-maturity and available-for-sale securities are to be classified as cash flows from investing activities. Conversely, amounts related to securities held for trading are classified as operating activities.
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