Where Do Intra-Entity Sales of Inventory Appear in a Consolidated

question 36

Multiple Choice

Where do intra-entity sales of inventory appear in a consolidated statement of cash flows?

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

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Definitions:

Withdrawals

Amounts taken out from a business by its owner(s) for personal use, reducing the owner's capital account.

Net Income

The company's overall earnings following the deduction of all expenses and taxes from its total revenue.

Statement Of Owner's Equity

A report that summarizes the fluctuation in the equity of a business due to profits earned, dividends paid, and capital invested during a specific period.

Income Statement

A financial statement that shows the company's revenues and expenses over a specific period, culminating in the net income or loss for that period.