In the Consolidated Cash Flow Statement, Dividends Paid by a Subsidiary

question 8

Multiple Choice

In the consolidated cash flow statement, dividends paid by a subsidiary to a parent are:

• A)not included
• B)are classified as investing
• C)are classified as financing
• D)are classified as investing by the parent and financing by the subsidiary

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Definitions:

No Money Down

A financing or purchase arrangement in which the buyer is not required to make any upfront payment at the time of purchase.

Weekly Payments

Regular payments made on a weekly basis, often used in terms of loan repayment schedules or employment salaries.

Stated Rate

The annual interest rate declared on a financial instrument, such as a bond, without accounting for compounding within the year.

Rate Of Return

The accrual or diminishment of value in an investment over a specific epoch, visualized as a percentage of the investment’s inaugural cost.