The Activities for the Year Ended December 31,2018 Included the Following

question 43

Multiple Choice

The activities for the year ended December 31,2018 included the following: • Sold a held-for-trading investment for $10,000.The book value was $15,000.
• Sold an available-for-sale investment for $10,000.The book value was $5,000.
How much would be presented as cash flow from operating activities?

• A)Proceeds from disposal in the amount of 10,000.
• B)Proceeds from disposal in the amount of 20,000.
• C)Loss on sale in the amount 5,000.
• D)Loss of 5,000 + Gain of 5,000.

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Definitions:

Sherman Act

A landmark U.S. antitrust law enacted in 1890 aimed at promoting fair competition for the benefit of consumers, by prohibiting monopolistic practices.

Conglomerate Mergers

A type of merger between companies that operate in unrelated business activities.

Horizontal Mergers

Mergers between companies that operate in the same industry, leading to consolidation and potentially reducing competition.

Price-Fixing

An illegal agreement among competitors to set prices at a certain level, rather than allowing them to be determined by the free market.