Any one of the question need to be answer. i\' ll be appriciate i yoou can help

Question

Any one of the question need to be answer. i' ll be appriciate i yoou can help me find both.

34) How should a loss in from the sale of an investment in another company’s stock be reported in a statement of cash flows using the indirect method?

A) In operating activities as a deduction from income

B) In operating activities as an assiteion to income

C) investment activities as a reduction of the cash inflow from the sale

D) In investment activities as a cash outflow

35) in a statement of cash flows (using indirect approach for operating activities) a decrease in accounts receivable should be prepared as a(n)

A) Addition to net income

B) Outflow in financing activities

C) Deduction from net income

D) Inflow in investing activities

Explanation / Answer

Answer

34.

In Operating Activities as an addition to Income

When we Calculated Net Income we must have deducted Loss so while preparing Cash Flow statement we will add back Loss in Operating Activities.

35.

Addition to Net Income

Increase/Decrease in Current Assets and Current Liabilities comes in Operating Activities.

Increase in Current Assets and Decrease in Current Liability gets deducted from Net Income While Calculating Cash flow from Operating Activities.

And

Decrease in Current Assets and Increase in Current Liability gets added to Net Income While Calculating Cash flow from Operating Activities.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.