Under cash flow categories, which category includes investments like money market funds earning or being spent?

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Multiple Choice

Under cash flow categories, which category includes investments like money market funds earning or being spent?

Explanation:
Cash flow statements separate cash movements into operating, investing, and financing activities. Investing activities cover the cash used for and generated by buying and selling investments, such as money market funds. So money market funds being bought or sold—and the cash tied to those investments—belongs in the investing section. Operating activities reflect the day-to-day business cash flows, financing covers debt and equity actions, and reconciliation isn’t a main cash flow category.

Cash flow statements separate cash movements into operating, investing, and financing activities. Investing activities cover the cash used for and generated by buying and selling investments, such as money market funds. So money market funds being bought or sold—and the cash tied to those investments—belongs in the investing section. Operating activities reflect the day-to-day business cash flows, financing covers debt and equity actions, and reconciliation isn’t a main cash flow category.

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