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.

Interpret demand elasticity for firms in monopolistic competition relative to perfect competition and monopoly.

Understand the criteria for monopolistic competition and the concept of perfect price discrimination.

Understand the principles of monopolistic competition, including product differentiation and market power.

Distinguish between monopolistic competition and perfect competition, including demand curves, efficiency, and profit-making.