The Effect of a Pro-Rata Share Issue for Cash by a Subsidiary

question 5

Multiple Choice

The effect of a pro-rata share issue for cash by a subsidiary on the consolidated cash flow statement:

• A)is always totally eliminated
• B)is always included
• C)is only included to the extent the shares are taken up by shareholders who are not members of the group (they are non-controlling interest shareholders)
• D)is only included to the extent the shares are taken up by the parent

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Definitions:

Uvula

Small, grape-like appendage at the posterior margin of the soft palate.

Deglutition

Act of swallowing.

Salivary Amylase

Salivary amylase is an enzyme secreted by the salivary glands that begins the digestive process by breaking down starch into simpler sugars.

Starch Digestion

The process by which dietary starch is broken down into simpler sugars, like glucose, by the action of enzymes.