The Noncurrent Liability, Noncontrolling Interest, Arises If

question 10

Multiple Choice

The noncurrent liability, Noncontrolling Interest, arises if:

• A) A firm owns less than 50% of another entity.
• B) A firm owns more than 50%, but less than 100%, of another entity.
• C) A firm owns 100% of another entity.
• D)Noncontrolling Interest is accounted for as an equity item.

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Definitions:

Depreciation Estimates

Projections or calculations made regarding the decrease in value of tangible assets over time due to use, wear, or obsolescence.

Depreciation Method

A systematic approach to allocating the cost of a tangible asset over its useful life.

Fixed Assets

Fixed assets are long-term tangible assets intended for use in the production or supply of goods or services, not easily converted to cash within a year.

Residual Value

The estimated salvage value of an asset after its useful life is over.