Under Parent Company Theory,the Amount of Consolidated Net Income Is

question 26

Multiple Choice

Under parent company theory,the amount of consolidated net income is equal to the amount of ________ under entity theory.

• A)noncontrolling interest share
• B)noncontrolling interest income
• C)income attributable to controlling stockholders
• D)income attributable to noncontrolling stockholders

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Definitions:

General Journal

A book or document where all financial transactions of a business are initially recorded, prior to being transferred to specific accounts in the general ledger.

Internal Transactions

Financial transactions that occur within an entity, affecting its internal accounts without involving external parties.

Partial Payment

A payment made that is not the full amount owed at the time, typically agreed upon in advance between debtor and creditor.

Cash Receipts Journal

A specialized accounting journal that tracks all cash inflows or money received by a business.