When preparing consolidated financial statements,which of the following is a subtraction in the calculation of cash flows from operating activities under the indirect method?
A)The change in the balance sheet of the common stock account
B)Noncontrolling interest dividends paid
C)Noncontrolling interest share
D)Undistributed income of equity investees

Question

Quizplus · Accepted Answer

Undistributed income of equity investees is subtracted from net income in the indirect method because it represents income that has been recognized but not received in cash.

When Preparing Consolidated Financial Statements,which of the Following Is a Subtraction