Which of the Following Statements Is True for a Consolidated

question 81

Multiple Choice

Which of the following statements is true for a consolidated statement of cash flows?

• A) Parent's dividends and subsidiary's dividends are deducted as a financing activity.
• B) Only parent's dividends are deducted as a financing activity.
• C) Parent's dividends and its share of subsidiary's dividends are deducted as a financing activity.
• D) All of parent's dividends and noncontrolling interest of subsidiary's dividends are deducted as a financing activity.
• E) Neither parent's nor subsidiary's dividends are deducted as a financing activity.

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Definitions:

Corporate Scandals

Refers to significant cases of corporate misconduct or fraudulent activities that damage the reputation and financial standing of businesses.

Public Utility Holding Company Act

U.S. law enacted to regulate the electric utility industry, aimed at eliminating abuses by holding companies in the decentralized public utility sector.

SEC

The U.S. Securities and Exchange Commission, a federal agency that regulates the securities markets to protect investors.

Securities Offerings

The process of issuing new securities for sale to investors, typically to raise capital for a corporation or government entity.