On a Statement of Cash Flows Using the Indirect Format,amortization

question 3

Multiple Choice

On a statement of cash flows using the indirect format,amortization of the premium on investments in bonds is:

• A)deducted from net income in the operating activities section
• B)included as an inflow in the financing activities section
• C)added to net income in the operating activities section
• D)ignored,since it is a noncash expenditure