A firm sold an investment in securities available for sale originally costing $30,000, for $28,000 . At the beginning of the year, the investment had a valuation allowance of $3,000, debit. What is the correct disclosure for these events in the statement of cash flows prepared under the direct method, assuming this is the only investment in securities available for sale?
a. $28,000 investing cash inflow; add $33,000 in the reconciliation of earnings and net operating cash flow
b. $28,000 investing cash inflow; add $2,000 in the reconciliation of earnings and net operating cash inflow
c. $28,000 investing cash inflow; add $5,000 in the reconciliation of earnings and net operating cash inflow
d. Add $5,000 in the reconciliation of earnings and net operating cash flow.
e. None of these answers is correct.
B
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Once a firm has carefully studied all of the vendors, bids have been considered, and the vendor audit has been conducted, the next step in the business-to-business buying process is:
A) the vendor screening B) vendor selection C) negotiation of purchase terms D) postpurchase evaluation
Hercules Sports Equipment Company projected sales of 79,000 units at a unit sales price of $12 for the year. Actual sales for the year were 75,000 units at $14 per unit. Variable costs were budgeted at $3 per unit, and the actual amount was $5 per unit. Budgeted fixed costs totaled $387,000, while actual fixed costs amounted to $450,000. What is the flexible budget variance for variable costs?
A) $158,000 unfavorable B) $150,000 unfavorable C) $150,000 favorable D) $158,000 favorable
Advertising explains that the drug Plavix works by preventing plaque buildup in arteries that can cause heart attack and stroke. This is an example of
A. using an attitudinal learning technique. B. using a behavioral learning technique. C. reducing perceived risk. D. creating stimulus generalization. E. using a cognitive learning technique.
A compulsory share exchange:
A) is a transaction by which the corporation becomes the owner of all the outstanding shares of one or more classes of another corporation by an exchange that is compulsory on all owners of the acquired shares. B) may be carried out by a corporation acquiring shares in another corporation with its or any other corporation's shares or other securities, but not for cash or other property. C) affects the separate existence of the corporate parties to the transaction. D) All of these.