In a noncash purchase of a controlling interest in a firm, disclosure is required on the consolidated statement of cash flows as a(n)

Question

Quizplus · Accepted Answer

A noncash purchase of a controlling interest in a firm is considered an investing activity and would be disclosed in the consolidated statement of cash flows under investing activities. In addition, the transaction would also be reported in the schedule of noncash financing and investing activity. Therefore, the best choice is D, which reflects both the investing activity and the schedule of noncash financing and investing activity.

In a Noncash Purchase of a Controlling Interest in a Firm