Noncontrolling Interests Appear on a Consolidated Balance Sheet When a Parent

question 59

True/False

Noncontrolling interests appear on a consolidated balance sheet when a parent company owns more than 50 percent but less than 100 percent of a subsidiary's common stock.

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Definitions:

Taxed

Subject to taxation by governmental authority, involving the imposition of financial charges on individual or corporate income, property, goods, services, or transactions.

Partnership

A business organization where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Parent-Subsidiary Corporations

A relationship between two companies where one, the parent, controls the other, the subsidiary.

Consolidated Tax Return

A tax return that combines the tax liability of all subsidiary companies with that of the parent company, simplifying tax filing for corporate groups.