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

question 19

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 a liability 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 equity.
• D) Under the proprietary concept, non-controlling interests will be shown as equity.

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Definitions:

Prefix

A morpheme added at the beginning of a word to alter its meaning or create a new word.

Abbreviation L

Stands for liter, a metric unit of volume equal to 1,000 milliliters or approximately 1.06 quarts.

Dx

An abbreviation for diagnosis, the process of identifying a disease or condition from its signs and symptoms.

GYN

Short for gynecology, which is the medical practice dealing with the health of the female reproductive system.