In a Statement of Cash Flows Using the Indirect Method

question 116

Multiple Choice

In a statement of cash flows using the indirect method, an increase in the available-for-sale debt securities account not due to an increase in 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) A net cash outflow from investing activity.
• D) A net cash inflow from investing activity.