1. In preparing a statement of cash flows, the cost of acquiring a subsidiary is reported:
a. As an operating activity under the direct method
b. As an operating activity under the indirect method
c. As an investing activity
d. As a financing activity
2. In computing cash flows from operating activities under the direct method, the following item is an addition:
a. Cash dividends from equity investees
b. Collection of principal on a loan made to a subsidiary
c. Noncontrolling interest dividends
d. Noncontrolling interest share
3. In computing cash flows from operating activities under the indirect method, the following item is an addition to the controlling share of consolidated net income:
a. Noncontrolling interest dividends
b. Noncontrolling interest share
c. Income from equity investees in excess of dividends received
d. Write-off of negative goodwill
4. In computing cash flows from operating activities under the direct method, the following item is an addition:
a. Sales
b. Noncontrolling interest share
c. Cash received from customers
d. Depreciation expense
5. Dividends paid as presented in a consolidated cash flow statement are:
a. Parent dividends
b. Subsidiary dividends
c. Parent and subsidiary dividends
d. Parent and noncontrolling interest dividends