When Following the Parent Company Concept in the Preparation of Consolidated

question 20

Multiple Choice

When following the parent company concept in the preparation of consolidated financial statements, noncontrolling interest in combined income is considered a(n) :

• 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.

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Definitions:

Express Refusals

Express refusals are clear and direct declarations of denial, often communicated to decline offers, requests, or proposals.

Negative Messages

Communication that conveys bad news, rejection, or criticism, often requiring careful wording to maintain goodwill.

Phrases

Phrases are groups of words that work together as a linguistic unit, typically forming a component of sentences without a subject and predicate of their own.

Audience Alternative

suggests exploring different or additional groups of people to target as the audience for a message, product, or service beyond the initial or usual demographic.