Multiple Choice
[The following information applies to the questions displayed below.]
An analysis of Kenny Corporation's Investment in Marketable Securities account during 2018 disclosed the following:
Kenny's 2018 income statement included a $90,000 loss on sale of marketable securities and $65,000 dividend income from marketable securities.All payments and proceeds relating to marketable securities transactions were in cash.
-How should the transactions involving marketable securities be classified in Kenny's statement of cash flows for 2018?
A) The purchase of marketable securities,sales of marketable securities,and receipt of dividends are all classified as investing activities.
B) The purchase and the sale of marketable securities are classified as investing activities;the receipt of dividends is classified as an operating activity.
C) The purchase of marketable securities is classified as an investing activity;the sale of marketable securities is classified as a financing activity;the receipt of dividends is classified as an operating activity.
D) The purchase and the sale of marketable securities are classified as investing activities;the receipt of dividends is classified as a financing activity.
Correct Answer:

Verified
Correct Answer:
Verified
Q97: Indicate how each of the following events
Q98: When equipment is sold at a loss:<br>A)The
Q99: Accounting terminology<br>Listed below are eight technical accounting
Q100: Cash flows from operating activities-indirect method<br>The data
Q101: Free cash flow refers to the excess
Q103: In a statement of cash flows,collections of
Q104: Free cash flow is computed as net
Q105: [The following information applies to the questions
Q106: Monarch Company uses the indirect method to
Q107: Rent expense in Marrin Company's 2018 income