How Do Intercompany Sales of Inventory Affect the Preparation of a Consolidated

question 109

Multiple Choice

How do intercompany sales 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:

Osteocytes

Mature bone cells encased in the calcified matrix, responsible for maintaining the bone tissue.

Osteon

The fundamental unit of compact bone, consisting of a central canal surrounded by concentric rings of bone matrix.

Osteoblasts

Cells responsible for the formation and mineralization of bone tissue.

Epiphysis

The end part of a long bone, initially growing separately from the shaft but later fusing to it.