Because It Is Necessary to Distinguish Between the Parents Share

question 46

True/False

Because it is necessary to distinguish between the parents share and the NCI share of equity in the consolidated financial statements, extra columns are added in the consolidation worksheet to divide the group equity into the NCI share and the parent's share.

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Definitions:

Required Rates Of Return

Required rates of return are the minimum returns investors expect to receive from an investment to compensate for its perceived risk.

Bondholders

Investors or entities that hold debt securities issued by corporations or governments, entitling them to receive a specified amount of interest and principal repayment.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on company matters.

Degree Of Operating Leverage (DOL)

A measure that assesses the sensitivity of a company's operating income to its sales, indicating the percentage change in operating income for a percentage change in sales.