Dividends Paid by a Subsidiary Have the Following Effect on the Consolidated

question 40

Multiple Choice

Dividends paid by a subsidiary have the following effect on the consolidated cash flow

• A)​all dividends to the parent and to non-controlling stockholders appear on the statement.
• B)​only dividends to the parent appear on the statement.
• C)​only dividends to NCI appear on the statement.
• D)neither dividends to the parent or to non-controlling stockholders appear on the statement​

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Definitions:

Finished Goods

Items that have gone through the production process and are now prepared for sale.

Manufacturer

A company or person that produces finished goods from raw materials in large quantities through various processes.

Ready For Sale

Indicates items or products are in a condition where they can be offered to customers for purchase.

Inventory Turnover

A financial ratio that measures how quickly a company sells and replaces its stock of goods within a period.