A parent company purchased all the outstanding bonds of its subsidiary. Will this cash transaction appear in the following sections of the consolidated statement of cash flows? * a. No; Yes; No; No b. No; No; Yes; No c. No; No; No; Yes d. Yes; No; No; No

A parent company purchased all the outstanding bonds of its subsidiary. Will this cash transaction appear in the following sections of the consolidated statement of cash flows? * a. No; Yes; No; No b. No; No; Yes; No c. No; No; No; Yes d. Yes; No; No; No

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 9MC: Which of the following need not be disclosed in a schedule accompanying the statement of cash flows...

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

a. No; Yes; No; No

b. No; No; Yes; No

c. No; No; No; Yes

d. Yes; No; No; No

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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