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:

Government

The group of people with the authority to govern a country or state, making and enforcing laws and policies.

Authority

The authority or ability to issue commands, take decisions, and ensure compliance.

Enforce Decisions

The process by which authoritative rulings or policies are implemented and ensured to be followed through by the relevant parties.

Air Quality

The condition of the air within our surroundings, measured by the presence and concentration of pollutants, which can affect human health and the environment.