Where Do Dividends Paid to the Noncontrolling Interest of a Subsidiary

question 44

Multiple Choice

Where do dividends paid to the noncontrolling interest of a subsidiary appear on a consolidated statement of cash flows?

• A) Cash flows from operating activities.
• B) Cash flows from investing activities.
• C) Cash flows from financing activities.
• D) Supplemental schedule of noncash investing and financing activities.
• E) They do not appear in the consolidated statement of cash flows.

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Definitions:

Classified Statement

A financial statement in which similar items are grouped together to facilitate better understanding and analysis of the company's financial position and performance.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, whichever is longer.

Converted Into Cash

The process of liquidating assets or investments to generate cash flow or liquidity.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, considered as current assets on a balance sheet.