The Purchase of Additional Shares from the Non-Controlling Interest of a Subsidiary

question 19

Multiple Choice

The purchase of additional shares from the non-controlling interest of a subsidiary by the parent results in disclosure in which section of a cash flow statement?

• A)​operating activities
• B)​financing activities
• C)​investing activities
• D)​not reflected on the statement of cash flows

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Definitions:

Efficient Allocation

An optimal distribution of resources in an economy where it is not possible to make someone better off without making someone else worse off.

Resources

Assets, materials, and inputs needed to produce goods and services in an economy.

Standard of Living

A measure indicating the degree of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Total Annual Output

The total value or volume of goods and services produced by an economy within a year.