Which of the Following Statements Is Not True with Respect

question 29

Multiple Choice

Which of the following statements is not true with respect to the statement of cash flows for a consolidated entity?

• A)The statement may be prepared using either the direct or the indirect method.
• B)Noncontrolling interest share will be added back to cash flows from operating activities under the indirect method.
• C)Payment of dividends from the subsidiary to the parent will appear on the statement of cash flows as a financing activity.
• D)If the subsidiary does not use the same method (direct or indirect)as the parent,they must convert their separate statement of cash flows first to the same method that the parent uses,and then the two statements are consolidated.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specific time period.

Equilibrium Prices

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition where there is no tendency for change.

Seating Capacity

The number of people who can be accommodated in a space, such as a vehicle, room, or venue, based on the available seats.