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:

Warm Climate

A geographic area characterized by high temperatures for most of the year.

Contamination

The presence of unwanted substances or qualities in something that make it impure or unsuitable for use.

Longitudinal Studies

Research methods that involve repeated observations of the same variables over short or long periods of time.

Crying Relieves Tension

Indicates the common belief that crying can help reduce emotional stress and provide a sense of relief.