1. In preparing a statement of cash flows, the cost of acquiring a subsidiary is reported:...

1. In preparing a statement of cash flows, the cost of acquiring a subsidiary is reported:

a As an operating activity under the direct method

b As an operating activity under the indirect method

c As an investing activity

d As a financing activity

2. In computing cash flows from operating activities under the direct method, the following item is an addition:

a Cash dividends from equity investees

b Collection of principal on a loan made to a subsidiary

c Noncontrolling interest dividends

d Noncontrolling interest share

3. In computing cash flows from operating activities under the indirect method, the following item is an addition to the controlling share of consolidated net income:

a Noncontrolling interest dividends

b Noncontrolling interest share

c Income from equity investees in excess of dividends received

d Write-off of negative goodwill

4. In computing cash flows from operating activities under the direct method, the following item is an addition:

a Sales

b Noncontrolling interest share

c Cash received from customers

d Depreciation expense

5. Dividends paid as presented in a consolidated cash flow statement are:

a Parent dividends

b Subsidiary dividends

c Parent and subsidiary dividends

d Parent and noncontrolling interest dividends