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.

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Definitions:

Sinoatrial Node

A small body of specialized muscle tissue in the heart that acts as a natural pacemaker, initiating the heart's electrical impulses.

AV Node

A part of the electrical conduction system of the heart that delays the electrical impulse from the atria, allowing the ventricles time to fill with blood.

Atrioventricular Valves

Valves between the atria and ventricles of the heart that prevent the backflow of blood.

Semilunar Valves

Heart valves located at the bases of the large arteries that exit the heart (the aorta and the pulmonary artery); they prevent blood from flowing back into the heart's ventricles after contraction.