Advanced Accounting final exam with verified solutions

Advanced Accounting final exam with verified solutions In the preparation of a consolidated statement of cash flows using the indirect method of presenting cash flows from operating activities, the amount of the noncontrolling interest in consolidated income is: Select one: a. combined with the controlling interest in consolidated net income. b. deducted from the controlling interest in consolidated net income. c. reported as a significant noncash investing and financing activity in the notes. d. reported as a component of cash flows from financing activities. - answera. combined with the controlling interest in consolidated net income. Eliminating entries are made to cancel the effects of intercompany transactions and are made on the: Select one: a. books of the parent company. b. books of the subsidiary company. c. workpaper only. d. books of both the parent company and the subsidiary. - answerc. workpaper only. When following the parent company concept in the preparation of consolidated financial statements, noncontrolling interest in combined income is considered a(n): Select one: a. prorated share of the combined income. b. addition to combined income to arrive at consolidated net income. c. expense deducted from combined income to arrive at consolidated net income. d. deduction from current assets in the balance sheet. - answerc. expense deducted from combined income to arrive at consolidated net income. In the preparation of a consolidated statements workpaper, dividend income recognized by a parent company for dividends distributed by its subsidiary is: Select one: a. included with parent company income from other sources to constitute consolidated net income. b. assigned as a component of the noncontrolling interest. c. allocated proportionately to consolidated net income and the noncontrolling interest. d. eliminated. - answerd. eliminate