In a Statement of Cash Flows Using the Indirect Method

question 12

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.The unrealized gain increased other comprehensive income, not net income, and is not a cash flow.

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Definitions:

Disease

A condition of the body or part of it in which functions are disturbed or arranged.

Genetics

The science of heredity and variation in living organisms.

Problem Drinking

A pattern of alcohol consumption that negatively impacts a person's health, social life, or responsibilities, but does not meet the criteria for alcohol dependence.

Health Effects

The impacts of various factors on an individual's physical and mental well-being, either positively or negatively.