When Using the Indirect Method to Determine Cash Flows from Operating

question 71

Multiple Choice

When using the indirect method to determine cash flows from operating activities, an increase in held-to-maturity securities that does not arise from the interest component of the debt 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) A financing activity.

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Definitions:

Ontological Argument

A philosophical argument for the existence of God based on the premise that the very concept of God implies his existence.

Kant

A German philosopher who is a central figure in modern philosophy, known for his works on epistemology, ethics, and aesthetics.

Cosmological Argument

An argument (or set of arguments) that undertakes to prove that God exists on the basis of the idea that there must have been a first cause or an ultimate reason for the existence of the universe (the cosmos).

Ontological

Having to do with the idea of existence or reality.