In Preparing a Statement of Cash Flows, the Reconciliation of Net

question 17

Multiple Choice

In preparing a statement of cash flows, the reconciliation of net income to cash from operating activities does not include

• A) loss on sale of operational assets.
• B) bond discount or premium amortization for the period.
• C) gain on sale of debt and equity securities classified as Trading Securities.
• D) adjustment to record debt or equity securities classified as Securities Available for Sale at fair value.

Recognize the significance of remittances and other transfers in the balance of payments.

Interpret how international investment and debt forgiveness transactions impact the financial account.

Understand the impact of exchange rate fluctuations on national currencies' relative value.

Define and distinguish between different types of exchange rate systems.