f depreciable equipment is sold at a gain, this transaction will appear the investing activities section only. the financing activities section only. both the operating activities and the investing activities sections. both the operating activities and financing activities sections.     2.  Which of the following is true if a company reports an unrealized increase in fair value of available-for-sale securities using an allowance account? The spreadsheet and statement of cash flows do not reflect this transaction. The spreadsheet accounts for this transaction, but it is not reflected in the statement of cash flows. The spreadsheet does not account for this transaction, but it is reflected in the statement of cash flows. Both the spreadsheet and the statement of cash flows reflect this transaction.

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
Problem 5QE
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1.  If depreciable equipment is sold at a gain, this transaction will appear

  1. the investing activities section only.
  2. the financing activities section only.
  3. both the operating activities and the investing activities sections.
  4. both the operating activities and financing activities sections.

 

 

2.  Which of the following is true if a company reports an unrealized increase in fair value of available-for-sale securities using an allowance account?

  1. The spreadsheet and statement of cash flows do not reflect this transaction.
  2. The spreadsheet accounts for this transaction, but it is not reflected in the statement of cash flows.
  3. The spreadsheet does not account for this transaction, but it is reflected in the statement of cash flows.
  4. Both the spreadsheet and the statement of cash flows reflect this transaction.
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