Minority Interest Is Reported as A(n)

question 57

Multiple Choice

Minority interest is reported as a(n)

• A) current liability on the consolidated balance sheet.
• B) asset on the consolidated balance sheet.
• C) revenue item on the consolidated income statement.
• D) separate item between liabilities and stockholders' equity on the consolidated balance sheet.

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Definitions:

Ownership

The legal right of possessing, using, and disposing of something, especially property or goods.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors and approving major company decisions.

Net Assets

represent the residual interest in the assets of an entity after deducting its liabilities.

Fair Market Value

An estimate of the price at which an asset would change hands between willing buyers and sellers in an arms-length transaction.