Which of the Following Statements Is True for a Consolidated

question 81

Multiple Choice

Which of the following statements is true for a consolidated statement of cash flows?

• A) Parent's dividends and subsidiary's dividends are deducted as a financing activity.
• B) Only parent's dividends are deducted as a financing activity.
• C) Parent's dividends and its share of subsidiary's dividends are deducted as a financing activity.
• D) All of parent's dividends and noncontrolling interest of subsidiary's dividends are deducted as a financing activity.
• E) Neither parent's nor subsidiary's dividends are deducted as a financing activity.

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Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, such as purchasing assets or stocks.

Economic Term

A concept or terminology used within the field of economics to describe processes, theories, or phenomena related to how goods and services are produced, distributed, and consumed.

Opportunity Cost

Giving up potential improvements from various alternatives by choosing one option.

Scarcity

Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of allocation decisions.