How Is the Non-Controlling Interest Treated in the Consolidated Balance

question 3

Multiple Choice

How is the non-controlling interest treated in the consolidated balance sheet?

• A)​It is included in long-term liabilities.
• B)​It appears between the liability and equity sections of the balance sheet.
• C)​It is included in total as a component of shareholders' equity.
• D)​It is included in shareholders' equity and broken down into par, paid-in capital in excess of par and retained earnings.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services provided on credit.

Inventory

The total amount of goods or materials a company holds, meant for sale or production.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.