The cash flow from operations section shows an addition for the increase in the current asset accounts in an amount equal to the firm's expenditure to acquire a derivative.

Question

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The cash flow from operations section only includes changes in current asset accounts that directly affect cash flow, such as accounts receivable and inventory. Expenditures to acquire a derivative would be reported in the financing or investing sections of the cash flow statement.

The Cash Flow from Operations Section Shows an Addition for the Increase