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 available for sale at fair value are not included in the reconciliation of net income to cash from operating activities, as they are not part of operating cash flows.

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