Under Parent Company Theory,noncontrolling Interest Is Classified on the Consolidated

question 12

Multiple Choice

Under parent company theory,noncontrolling interest is classified on the consolidated balance sheet as ________.Under entity theory,noncontrolling interest is classified on the consolidated balance sheet as ________.

• A)stockholders' equity; stockholders' equity
• B)stockholders' equity; liability
• C)liability; a liability
• D)liability; stockholders' equity

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Definitions:

Organizational Design

The process of structuring mechanisms, roles, and systems within an organization to achieve its goals and strategy efficiently and effectively.

Structural Configuration

The arrangement of components within an organization that determines its procedures, roles, and communication patterns.

Implementing

Refers to the process of putting plans or decisions into action in a systematic way.

Intensive Technology

A type of technology that requires a high degree of skill, knowledge, or input to produce outputs.