37. Which one of the following would NOT be part of the Nonoperating section (ot

Question

37. Which one of the following would NOT be part of the Nonoperating section (other gains/losses) of the Income statement?

A.Extraordinary Items

B.Dividend Revenue

C.Realized Gain on Sale of Equipment

D.Interest Revenue

E.Unrealized Loss on Available for Sale Securities

39. When preparing a statement of cash flows (indirect method), which of the following is not an adjustment to reconcile net income to net cash provided by operating activities?

a.   A change in dividends payable

b.   A change in income taxes payable

c.   A change in accrued expenses payable

d.   A change in interest payable

Explanation / Answer

Non operating section in the income statement includes
a) Dividend/Interest income
b) Profits/losses from investments
c) Gains/losses due to foreign exchange fluctuations
d) Asset write-downs
e) Gain on sale of investments/equipment

Extraordinary items donot form part of any section as they're a seperate line item.
So, the answer is Option A

39) Under indirect method
INcome taxes paid, accrued expenses, interest payable are all adjusted but dividends payable will form part of Financing activity and not operating activity.
SO, the answer is Option A

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