Where Does the Noncontrolling Interest in Stage's Net Income Appear

question 93

Multiple Choice

Where does the noncontrolling interest in Stage's net income appear on a consolidated statement of cash flows?

• A) $30,000 added to net income as an operating activity on the consolidated statement of cash flows.
• B) $30,000 deducted from net income as an operating activity on the consolidated statement of cash flows.
• C) $30,000 increase as an investing activity on the consolidated statement of cash flows.
• D) $30,000 decrease as an investing activity on the consolidated statement of cash flows.
• E) Noncontrolling interest in Stage's net income does not appear on a consolidated statement of cash flows.

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Definitions:

Constrained Resource

A factor that limits the output of a process or the achievement of organizational goals, often critical in determining maximum production or service levels.

Special Order

An order for a product or service that is not part of the company's usual offerings or produced under unique specifications, often at a negotiated price.

Minimum Price

The lowest price at which a product or service can be sold, often set to cover costs or comply with legal requirements.

Machine Hours

A measure of the operating time of machinery used in production, commonly applied in calculating depreciation or allocating overhead.