In preparing a statement of cash flows,the reconciliation of net income to cash from operating activities does NOT include
A) loss on sale of operational assets.
B) bond discount or premium amortization for the period.
C) gain on sale of debt and equity securities classified as Trading Securities.
D) adjustment to record debt or equity securities classified as Securities Available for Sale at fair value.

Question

Quizplus · Accepted Answer

Adjustments for securities classified as Available for Sale are not included in the operating activities section; they are part of other comprehensive income and affect the equity section of the balance sheet.

In Preparing a Statement of Cash Flows,the Reconciliation of Net