Daniels Corporation Reports Its Income from Investments Under the Equity

question 20

Multiple Choice

Daniels Corporation reports its income from investments under the equity method and recognized income of $15,000 from its investment in Travis Company during the current year. Travis declared no dividends during the current year. On Daniels' statement of cash flows the $15,000 would

• A) be shown as cash from investing activities.
• B) be shown as an addition to net income in the reconciliation of net income to cash from operations.
• C) be shown as a deduction from net income in the reconciliation of net income to cash from operations.
• D) not be shown.

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Definitions:

Process Costing

An accounting methodology used to allocate costs to units of product in processes where the products are indistinguishable from each other.