In a Statement of Cash Flows Using the Indirect Method

question 88

Multiple Choice

In a statement of cash flows using the indirect method, an increase in the available-for-sale debt securities account due to an increase in the debt's 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:

Union Generals

Military leaders who commanded the Union armies during the American Civil War, fighting against the Confederate states.

North's Favor

A term that might refer to preferences, advantages, or policies that benefit the northern regions or entities, specifically in a historical or political context. NO

Sherman

General William Tecumseh Sherman, a key Union general during the American Civil War, known for his "March to the Sea" and scorched earth policies.

Take Atlanta

Refers to the military objective during the Civil War, where Union forces aimed to capture the strategic Confederate city of Atlanta, Georgia.