On the Consolidated Statement of Cash Flows, the Parent's Acquisition

question 19

Multiple Choice

On the consolidated statement of cash flows, the parent's acquisition of additional shares of the subsidiary's stock directly from the subsidiary is reported as:

• A) an investing activity.
• B) a financing activity.
• C) an operating activity.
• D) none of these.

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Definitions:

Low-Viscosity

a property of liquids that denotes a low resistance to flow, characteristic of substances that pour easily at room temperature.

Intrinsic

Referring to something that is inherent or natural, often used to describe motivation or value coming from within rather than external rewards.

Extrinsic

Originating from outside rather than from within a person, often referring to external motivations or factors.

Personal

Relates to or concerns an individual's private life, feelings, or circumstances.