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.

Question

Quizplus · Accepted Answer

Available-for-sale securities' fair value changes are not reported in the cash flow statement as they do not involve actual cash transactions.

In a Statement of Cash Flows Using the Indirect Method,an