Each of the following transactions would be reflected in both the income statement and the statement of cash flows for the current period,except:
A)The adjustment of marketable securities to their current market value.
B)Receipt of dividends earned on investments.
C)Payment of interest on bonds.
D)Sale of merchandise for cash.

Question

Quizplus · Accepted Answer

The adjustment of marketable securities to their current market value would only be reflected in the balance sheet as a change in the value of the asset, but would not affect either the income statement or statement of cash flows. The other options would affect both financial statements.

Each of the Following Transactions Would Be Reflected in Both