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.