Each of the following transactions would be reflected in both the income statement and the statement of cash flows for the current period, except:
A) Purchase of marketable securities for cash.
B) Receipt of dividends earned on investments.
C) Payment of interest on bonds.
D) Sale of merchandise for cash.

Question

Quizplus · Accepted Answer

The purchase of marketable securities for cash is a cash outflow reflected in the statement of cash flows but does not affect the income statement, as it is not an expense or revenue transaction.

Each of the Following Transactions Would Be Reflected in Both