Which of the Following Statements Regarding the Non-Controlling Interest Is

question 60

Multiple Choice

Which of the following statements regarding the non-controlling interest is FALSE?

• A)In a subsidiary that is not wholly owned by the parent, there are two ownership interests, namely the parent and the non-controlling interest (NCI).
• B)The NCI consists of the accumulation of all the interests in the subsidiary other than the parent.
• C)The NCI is classified as a contributor of equity to the group.
• D)The NCI is entitled to a share of the equity, as recorded, of the subsidiary.

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Definitions:

Quantity of Output

The total amount of goods or services produced by a company, industry, or country.

Production Function

A mathematical model describing the relationship between the inputs used in production and the output of goods or services produced.

Long-Run Marginal Cost Curve

A graphical representation showing the change in total cost associated with producing one more unit of output when all inputs are variable.

Price of Labor

The compensation, including wages, salaries, and benefits, that employers pay to employees for their labor or work done.