Where Do Dividends Paid by a Subsidiary to the Parent

question 108

Multiple Choice

Where do dividends paid by a subsidiary to the parent company appear on a consolidated statement of cash flows?

• A)Cash flows from operating activities.
• B)Cash flows from investing activities.
• C)Cash flows from financing activities.
• D)Supplemental schedule of noncash investing and financing activities.
• E)They do not appear on the consolidated statement of cash flows.

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Definitions:

Total Product Curve

A graphical representation showing how the total output of a firm changes as the amount of a single input changes, holding all other inputs constant.

Average Product

The output per unit of input, calculated by dividing total production by the number of units of input.

Marginal Product

The additional output derived from the use of one more unit of a production input, while holding other inputs constant.

Technologically Efficient

A state of production where it is not possible to increase the production of one good without decreasing the production of another, given current technology.