When a Subsidiary Company That Has a Non-Controlling Interest (NCI)declares

question 41

Multiple Choice

When a subsidiary company that has a non-controlling interest (NCI) declares a dividend,the treatment in the consolidated statement of financial position of dividends not paid is:

• A) The non-controlling interest portion of the dividend owing should be eliminated along with the parent entity's share, leaving a zero balance in dividends payable.
• B) The NCI's portion should be deducted from the non-controlling interest's share in equity. There should be no dividend amounts remaining in the consolidated statement of financial position, but the amount owed to the NCI should be disclosed separately.
• C) The amount owing to NCI as a dividend payable should be included in the consolidated statement of financial position as a current liability.
• D) The amount of dividends payable to both the parent entity and the NCI will be reflected in the consolidated statement of financial position.

Understand the essentials of planning within an organization, including identifying alternatives and selecting optimal solutions.

Comprehend the lean business model, including its main idea of eliminating waste and practices for continuous improvement.

Distinguish between managerial and financial accounting, focusing on their objectives and reporting requirements.

Recognize the importance of control measures in management, including performance reports and the PDCA Cycle.

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Definitions:

Green

A color perceived when light with a wavelength between approximately 495–570 nm is detected by the eye, commonly associated with nature and growth.

Operant Response

A behavior that is modifiable by its consequences, including reinforcement or punishment, within the context of operant conditioning.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Reinforced

In psychology, refers to the process of strengthening a behavior by providing a consequence that will increase the likelihood of the behavior's recurrence.