Explain How the Following Transactions Should Be Reported in the Statement

question 29

Essay

Explain how the following transactions should be reported in the statement of cash flows, assuming the indirect method is used to determine cash flows from operating activities. Identify all available options. If not reported on the statement of cash flows, indicate the disclosure requirements, if any.
1. The purchase of a $100,000, 45-day Treasury bill classified at FVPL.
2. Amortization of the discount on bonds payable in the amount of $20,000.

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Definitions:

Advertisement

A notice or announcement in a public medium promoting a product, service, or event.

Federal Law

Laws passed by the national government of the United States, which are applicable throughout the country, as opposed to laws passed by state or local governments.

Funeral Services

Professional services offered by funeral homes and directors that involve the preparation, management, and conduct of a funeral.

Complete Package

A product or deal that includes everything needed for a particular purpose or requirement, leaving nothing out.