A Company's Activities for the Year Ended December 31, 2021

question 44

Multiple Choice

A company's activities for the year ended December 31, 2021 included the following: • Sold an investment at FVPL for $10,000. The investment was held for trading purposes. The book value was $15,000.
• Sold an Investment at FVOCI for $10,000. The original cost was $5,000.
Using the indirect method, 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)Adjustment of $5,000 on loss on sale of the investment at FVPL, an adjustment of $(5,000)on the recycled gain on sale on the investment at FVOCI, and +$10,000 inflow from the sales proceeds of the investment at FVPL.

---

Definitions:

Depth Perception

The ability to perceive the world in three dimensions.

Visual Acuity

The sharpness or clarity of vision, which is typically measured by the ability to discern letters or numbers at a standardized distance.

Uterine

Pertaining to the uterus, the organ in female mammals where offspring are conceived and in which they gestate before birth.

Development

The process of change and growth through which an organism goes through in its life, encompassing physical, cognitive, and social stages.