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

question 2

Multiple Choice

Which of the following statements is incorrect in regards to non-controlling interests in subsidiaries?

• A) The requirement to eliminate the effects of intragroup transactions holds whether or not there are non-controlling interests.
• B) The non-controlling interest's share in the dividends paid or proposed by the subsidiary is eliminated on consolidation.
• C) The non-controlling interest's share of the profits of the subsidiary is calculated after adjustments to eliminate income and expenses of the subsidiary that are unrealised from the economic entity's perspective.
• D) Management fees paid in an intragroup transaction is considered realised when determining non-controlling interests in a subsidiary.
• E) None of the given answers.

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Definitions:

Very Attractive

Possessing physical or other qualities that generate a high level of appeal or interest in others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Public Image

The perception of an individual, company, or organization held by the public, shaped by various forms of communication media and firsthand experiences.

Sexually Abusing

Engaging in unwanted or forced sexual activities with another individual without their consent, violating their rights and well-being.