What Would Differ Between a Statement of Cash Flows for a Consolidated

question 3

Multiple Choice

What would differ between a statement of cash flows for a consolidated company and an unconsolidated company using the indirect method?

• A) Parent's dividends would be subtracted as a financing activity.
• B) Gain on sale of land would be deducted from net income.
• C) Noncontrolling interest in net income of subsidiary would be added to net income.
• D) Proceeds from the sale of long-term investments would be added to investing activities.
• E) Loss on sale of equipment would be added to net income.

---

Definitions:

Natural Rights

Fundamental rights that are believed to be inherent and inalienable to all humans, such as life, liberty, and property, often emphasized in Enlightenment thought.

Tabula Rasa

A philosophical theory meaning "blank slate" in Latin, proposing that individuals are born without built-in mental content, and all knowledge comes from experience or perception.

Philosophe

An intellectual of the 18th-century Enlightenment who sought to apply reason to the study of many areas of learning, including philosophy, history, science, politics, economics, and social issues.

Serfdom Patent

A document or decree abolishing or altering the conditions of serfdom, a form of labor widely used in feudal systems where serfs were tied to and worked land owned by lords.