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:

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or losses.

Net Income

The total profit of a business after all expenses and taxes have been deducted from total revenue.

Closing the Revenue

The process of transferring the balances from the revenue accounts to permanent accounts at the end of an accounting period.

Building Account

An account used to track the costs associated with constructing a building over a period of time.