For Each of the Following Activities That May Take Place

question 100

Multiple Choice

For each of the following activities that may take place during the accounting period, indicate the effect a-g on the statement of cash flows prepared using the indirect method.Choices may be selected as the answer for more than one question.
-amortization of intangible assets

• A)increase cash from operating activities
• B)decrease cash from operating activities
• C)increase cash from investing activities
• D)decrease cash from investing activities
• E)increase cash from financing activities
• F)decrease cash from financing activities
• G)noncash investing and financing supplement

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Definitions:

Long-Term Investments-HTM

Investments classified as held-to-maturity (HTM) are financial assets a company intends and is able to hold until a fixed future date.

Short-Term Investment-AFS

Refers to Available-for-Sale short-term investments that are not classified as held-to-maturity or trading, and can be sold in response to liquidity needs or changes in interest rates.

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, and are thus recorded at fair value with changes reflected in other comprehensive income.

Historical Cost

The original monetary value of an asset, reflecting its cost at the time of acquisition, not adjusted for inflation or changes in market value.