[The Following Information Applies to the Questions Displayed Below

question 43

Multiple Choice

[The following information applies to the questions displayed below.]
An analysis of Korman Corporation's Investment in Marketable Securities account during 2018 disclosed the following:
Korman's 2018 income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities.All payments and proceeds relating to marketable securities transactions were in cash.
-How should the transactions involving marketable securities be classified in Korman's statement of cash flows for 2018?

• A)The purchase of marketable securities,sales of marketable securities,and receipt of dividends are all classified as investing activities.
• B)The purchase and the sale of marketable securities are classified as investing activities;the receipt of dividends is classified as an operating activity.
• C)The purchase of marketable securities is classified as an investing activity;the sale of marketable securities is classified as a financing activity;the receipt of dividends is classified as an operating activity.
• D)The purchase and the sale of marketable securities are classified as investing activities;the receipt of dividends is classified as a financing activity.

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Definitions:

Fixation

An obsessive interest or feeling towards a particular object or idea that can lead to developmental issues in psychoanalytic theory.

Physician

A physician is a medical professional who diagnoses, treats, and helps prevent diseases and injuries in patients, often holding a degree in medicine.

Psychoanalysis

A therapeutic approach and theory of personality developed by Freud, focusing on unconscious motives and conflicts.

Reality Principle

The concept in psychoanalysis that represents the adjustment of the individual to the constraints of the external world.