Which of the following is true regarding the Consolidated Statement of Cash Flow

Question

Which of the following is true regarding the Consolidated Statement of Cash Flows?

       The consolidated statement of cash flows is prepared by combining the statement of cash flows of the parent with the statement of cash flows of the subsidiary

       The consolidated statement of cash flows must be prepared using the direct method

       The consolidated statement of cash flows is prepared based on information from the consolidated income statement and the consolidated balance sheet

       The consolidated statement of cash flows is not required; it is an optional statement that most companies prepare in order to provide full disclosure

Which of the following is true regarding the Consolidated Statement of Cash Flows?

Explanation / Answer

The Consolidated Statement of Cash Flows is the consolidated statement of cash flows is prepared by combining the statement of cash flows of the parent with the statement of cash flows of the subsidiary. The correct answer is option (A). The statement of transactions in a business or group of companies is known by the consolidated statement of cash flow. A detailed accounting information is known by the consolidated statement of cash flow.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.