Which of the Following Statements Is Incorrect with Regards to Non-Controlling

question 12

Multiple Choice

Which of the following statements is incorrect with regards to non-controlling interests in subsidiaries?

• A) A non-controlling interest is defined as equity in a subsidiary not attributable, directly or indirectly, to a parent.
• B) Under the entity concept, if subsidiaries are partly owned by the parent entity, both the parent entity and the non-controlling interests will have an ownership interest in the subsidiary's profits, dividend payments, and share capital and reserves.
• C) Under the entity concept, non-controlling interests will be shown as a liability.
• D) Under the proprietary concept, non-controlling interests will be shown as a liability.

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Definitions:

Highly Involved

Characterized by a significant or intense engagement or commitment to an activity, cause, or issue.

Sensation-Seeking

A trait defined by the search for experiences and feelings that are varied, novel, complex, and intense.

Hypnotic Responsiveness

The extent to which an individual is likely to experience suggested alterations in perception, sensation, emotion, thought, or behavior during hypnosis.