A Parent Company Owns 80% of the Common Stock of Its

question 35

Short Answer

A parent company owns 80% of the common stock of its subsidiary.During the current year, the parent purchases an additional 10% interest from non-controlling shareholders.This cash transaction will appear in which section of the consolidated statement of cash flows? ?
$\begin{array} { r c c l } \text { Operating } & \text { Investing } & \text { Financing } & \text { No Adjustment } \\\end{array}$
A) $\begin{array} { r c c l } &\text {Yes } &&& \text { No } &&&& \text { No } &&&&& \text { No } \\\end{array}$
B) $\begin{array} { r c c l } &\text {No } &&& \text { Yes } &&&& \text { No } &&&&& \text { No } \\\end{array}$
C) $\begin{array} { r c c l } &\text {No } &&& \text { No } &&&& \text { Yes } &&&&& \text { No } \\\end{array}$
D) $\begin{array} { r c c l } &\text {No } &&& \text { No } &&&& \text { No } & &&&&\text { Yes }\end{array}$

• A)\(\begin{array} { r c c l } &\text {Yes } &&& \text { No } &&&& \text { No } &&&&& \text { No } \\\end{array}\)
• B)\(\begin{array} { r c c l } &\text {No } &&& \text { Yes } &&&& \text { No } &&&&& \text { No } \\\end{array}\)
• C)\(\begin{array} { r c c l } &\text {No } &&& \text { No } &&&& \text { Yes } &&&&& \text { No } \\\end{array}\)
• D)\(\begin{array} { r c c l } &\text {No } &&& \text { No } &&&& \text { No } & &&&&\text { Yes }
• \end{array}\)

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Definitions:

Social Bonding Skills

The abilities and capacities to form and maintain interpersonal relationships and connections within a social context.

Positive Emotion

The experience of feelings that are inherently pleasant, such as joy, gratitude, love, and happiness.

Positivity

The practice of maintaining a generally optimistic outlook and focusing on the positive aspects of any situation.

Extroverts

Individuals characterized by their outgoing, sociable, and energized by interactions with other people personality traits.