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:

Excitement

A feeling of enthusiasm and eagerness, often accompanied by elevated physiological arousal, in anticipation of something enjoyable or interesting.

Fear

An emotional response to perceived threats or danger, characterized by increased alertness, anxiety, and behavioral changes aimed at avoiding harm.

Slow-to-warm-up

A temperament in children characterized by a cautious, reflective approach to new experiences or strangers, gradually becoming more comfortable over time.

Rattle

A toy designed for young children that makes a sound when shaken.