Which of the Following Statements Is Not True with Respect

question 4

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,it 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:

Irrevocable Offer

An offer that cannot be withdrawn or canceled by the offeror for a specified period, assuming the offeree has given some consideration in exchange for the offer's irrevocability.

Merchant

An individual or entity engaging in the selling of goods or services professionally or commercially.

UCC

Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law.

Legal Sufficiency

The measure of whether a legal document or action meets the minimum requirements of the law to be enforceable.