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:

Nonverbal Indicators

Communications expressed through body movements, facial expressions, gestures, and posture, rather than spoken words.

Facial Expression

The use of facial muscles to convey emotions, intentions, or social information.

Display Rules

Culturally determined guidelines that govern the management and expression of emotions in various social situations.

Emotions

Powerful, largely uncontrollable feelings, accompanied by physiological changes.