A Company Completed the Following Transactions Involving Investments During 2014

question 41

Multiple Choice

A company completed the following transactions involving investments during 2014. The company uses the indirect method to prepare the operating activities section of the statement of cash flows. The following statements describe how the company reported the cash flow effects of the above transactions. Which of the following has been reported incorrectly?

• A)Payments of $50,000 for money market funds were reported as a cash outflow in the investing activities section.
• B)Proceeds of $70,000 were reported as a cash inflow in the investing activities section.
• C)Payments of $55,000 for trading securities were reported as a cash outflow in the operating activities section.
• D)A gain of $10,000 on the sale of available-for-sale securities was deducted from net income in the operating activities section.

---

Definitions:

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group, often losing their original cultural identity.

Ethnocide

The deliberate and systematic destruction of the culture of an ethnic group, often alongside physical genocide but can occur separately.

News Media

Refers to various forms of media that focus on delivering news to the general public or a target audience.

Soft Power

Power that co-opts rather than coerces, pressing others through attraction and persuasion to change their ideas, beliefs, values, and behaviors.