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kodGreya [7K]
3 years ago
9

Moon Company owns 56 million shares of stock as a long-term investment in Center Company and Moon does not have significant infl

uence over Center. During 2018, the fair value of those shares increased by $34 million. What effect does this increase have on Moon's 2018 adjustments in the statement of cash flows? Group of answer choices No effect. Cash flow from financing activities will be increased. Cash flow from investing activities will be increased. Cash flow from operating activities will be decreased.
Business
1 answer:
Gnom [1K]3 years ago
5 0

Answer:

No effect.

Explanation:

The Cash Flow Statement only records cash transactions and events. Adjustments to changes in fair value does not depict a cash movement, thus there is no effect on the statement of cash flows for this event.

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