What Would Differ Between a Statement of Cash Flows for a Consolidated

question 3

Multiple Choice

What would differ between a statement of cash flows for a consolidated company and an unconsolidated company using the indirect method?

• A) Parent's dividends would be subtracted as a financing activity.
• B) Gain on sale of land would be deducted from net income.
• C) Noncontrolling interest in net income of subsidiary would be added to net income.
• D) Proceeds from the sale of long-term investments would be added to investing activities.
• E) Loss on sale of equipment would be added to net income.

---

Definitions:

Downward-Sloping

Describes a line or curve that moves from the upper left to the lower right, often used to illustrate a decrease in price leading to an increase in demand.

Upward-Sloping

A term often used in economics to describe a curve or line on a graph that increases in value as you move from left to right, indicating a direct relationship between two variables.

Excise Tax

A tax on the sale or use of specific products or transactions.

Tax Burden

The total amount of taxes paid by an individual, corporation, or sector, often expressed as a percentage of income or GDP.