The Correct Sequence of Events for an Automated Equivalent to a Manual

question 1

Multiple Choice

The correct sequence of events for an automated equivalent to a manual system is

• A)business event occurs, update master data, record business event data, generate output
• B)business event occurs, generate output, update master data, record business event data
• C)business event occurs, record business event data, update master data, generate output
• D)none of the above

Analyze the effects of stock transactions and noncontrolling interests on the investment accounts and equity sections of the parent company.

Understand the treatment and presentation of dividends and intra-entity transfers in consolidated financial statements.

Calculate cash flows and understand the impact of intercompany transactions on the consolidated statement of cash flows.

Grasp the concept of noncontrolling interest and its impact on consolidated net income and other comprehensive income.

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Definitions:

Financing Activities

Transactions a company engages in to finance its operations and expansions, such as issuing equity, taking on debt, or repaying loans, reported in the cash flow statement.

Dividends

Payments made by a corporation to its shareholder members, typically distributed from profits.

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, or equipment.

Dividend Increase

An increase in the amount of payment made by a corporation to its shareholders, usually realized when the company has achieved additional profits.