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A company recognized an unrealized gain of $15,000 on a trading security. This would be reflected on the cash flow statement as:
A. a deduction from operating cash flows.
B. a decrease in investing cash flows.
C. an increase in investing cash flows.
Answer: A
Explanation:
The unrealized gain would be included in net income but it is a noncash event. Therefore, it would be deducted from operating cash flows. Only the actual purchase or sale of investments would be an investing activity.
NEW QUESTION: 2
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Answer: D
NEW QUESTION: 3
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Humon2 (exhibit):
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Answer: B
Explanation:
http://technet.microsoft.com/en-us/library/dd875560%28WS.10%29.aspx
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