In a Statement of Cash Flows Using the Indirect Method

Multiple Choice

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.The unrealized gain increased other comprehensive income, not net income, and is not a cash flow.