Moon Company Owns 56 Million Shares of Stock of Center

question 147

Multiple Choice

Moon Company owns 56 million shares of stock of Center Company classified as available for sale. During 2013, the fair value of those shares increased by $34 million. What effect did this increase have on Moon's 2013 statement of cash flows?

• A)Cash from operating activities increased.
• B)Cash from investing activities increased.
• C)Cash from financing activities increased.
• D)No effect.

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Definitions:

Organisational Staffing

The process of hiring and developing personnel to meet the needs of an organization.

Competitive Advantage

An attribute or set of attributes that allows an organization to outperform its competitors, often leading to greater market share or profitability.

Organisational Change

The process by which organizations transform their structure, strategies, operational methods, or culture to cope with internal and external challenges.

Innovation

The act of introducing something new, such as an idea, method, or device, that is designed to improve efficiency, effectiveness, or competitive advantage.