How Do Intra-Entity Transfers of Inventory Affect the Preparation of a Consolidated

question 117

Multiple Choice

How do intra-entity transfers of inventory affect the preparation of a consolidated statement of cash flows?

• A) They must be added in calculating cash flows from investing activities.
• B) They must be deducted in calculating cash flows from investing activities.
• C) They must be added in calculating cash flows from operating activities.
• D) Because the consolidated balance sheet and income statement are used in preparing the consolidated statement of cash flows, no special elimination is required.
• E) They must be deducted in calculating cash flows from operating activities.

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Definitions:

Parroting

Repeating words or phrases spoken by others, often without understanding the meaning or context, typically as a technique in language learning.

Paraphrase

The act of rewording or rephrasing someone else's text or speech to make it clearer or to convey the same message in a different way.

Imitation

The action of copying or mimicking someone else's behavior, speech, or actions, often as a learning method or form of social interaction.

Reflection of Feeling

A therapeutic technique where the therapist mirrors the client's emotions, helping the client explore their own feelings more deeply.