Where do dividends paid by a subsidiary to the parent company appear in 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.

Question

Quizplus · Accepted Answer

In a consolidated statement of cash flows, dividends paid by a subsidiary to the parent company are eliminated in consolidation and do not appear, as the cash flow statement reflects the cash flows of the entire consolidated entity.

Where Do Dividends Paid by a Subsidiary to the Parent