Where Do Dividends Paid to the Noncontrolling Interest of a Subsidiary

question 44

Multiple Choice

Where do dividends paid to the noncontrolling interest of a subsidiary 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 in the consolidated statement of cash flows.

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Definitions:

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits.

Consolidated Revenues

The total income generated by a parent company and its subsidiaries, combined into one figure, reflecting the aggregate of all operations.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profitability through dividends or stock price appreciation.

Acquisition

Acquiring ownership of another firm through the purchase of its assets, shares, or both.