Which of the Following Statements Is Incorrect with Regards to a Consolidation

question 13

Multiple Choice

Which of the following statements is incorrect with regards to a consolidation worksheet in the presence of the non-controlling interest?

• A) there is no NCI share extracted from the assets and liabilities section of the worksheet.
• B) one extra column is added that includes the parent share of the individual equity accounts.
• C) two extra columns are added to the worksheet to divide the consolidated equity into the NCI and parent share.
• D) one extra column is added that includes the NCI share of the individual equity accounts.

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Definitions:

Securities And Exchange Commission

A government commission created by Congress to regulate the securities markets and protect investors in the United States, often abbreviated as SEC.

Accounting Principles

Fundamental concepts that guide the field of accounting, including principles like revenue recognition, matching, and the principle of conservatism.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information.

Problem-Solving

A method or process of resolving issues, challenges, or complexities in a systematic manner.