In a Statement of Cash Flows Using the Indirect Method,an

question 139

Multiple Choice

In a statement of cash flows using the indirect method,an increase in available-for-sale securities due to an increase in their fair value should be reported as:

• A)A deduction from net income in determining cash flows from operating activities.
• B)An addition to net income in determining cash flows from operating activities.
• C)An investing activity.
• D)Not reported.

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Definitions:

Placebo Effect

A phenomenon wherein a patient's symptoms can improve after receiving a treatment with no therapeutic value, purely because of the individual's belief in the treatment's efficacy.

Experimenter Bias

A type of research bias where the expectations or preferences of the researcher influence the outcomes of the study.

Researcher's Expectations

Preconceived beliefs or predictions about the outcome of a study, which can potentially influence the results unintentionally.

Statistically Significant

A term used to describe a result that is unlikely to have occurred by chance alone, according to a pre-determined threshold in hypothesis testing.