The Amount of the Adjustment to the Noncontrolling Interest in Consolidated

question 10

Multiple Choice

The amount of the adjustment to the noncontrolling interest in consolidated net assets is equal to the noncontrolling interest's percentage of the:

• A) unrealized intercompany gain at the beginning of the period.
• B) unrealized intercompany gain at the end of the period.
• C) realized intercompany gain at the beginning of the period.
• D) realized intercompany gain at the end of the period.

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Definitions:

Marketable Securities

Financial instruments that can be easily bought or sold on public stock exchanges or other financial markets.

Accounts Receivable

Amounts due from customers for goods or services provided by a firm, yet to be paid.

Common-sized Income Statement

An income statement in which each line item is expressed as a percentage of sales revenue, allowing for easy comparison across periods or companies by standardizing the scale.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, or of different companies during the same period.