Which of the Following Statements Is True for a Consolidated

question 24

Multiple Choice

Which of the following statements is true for a consolidated statement of cash flows?

• A) Parent's dividends and subsidiary's dividends are deducted as a financing activity.
• B) Only parent's dividends are deducted as a financing activity.
• C) Parent's dividends and its share of subsidiary's dividends are deducted as a financing activity.
• D) All of parent's dividends and non-controlling interest of subsidiary's dividends are deducted as a financing activity.
• E) Neither parent's or subsidiary's dividends are deducted as a financing activity.

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Definitions:

Fairness

The quality of treating others equitably, without favoritism or discrimination, often applied in legal, social, and economic contexts.

Equity

The ownership interest held by shareholders in a corporation, represented by their shares of stock.

Proportional

A relationship between two quantities where they increase or decrease at the same rate.

Tax Collection

The process performed by governments or authorized agencies to collect taxes from individuals, corporations, and other entities to fund public expenditures.