An Advantage of Proportionate Consolidation Is That the Minority Interest

question 78

True/False

An advantage of proportionate consolidation is that the minority interest category does not arise.

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Definitions:

Interest Received

Income earned from investing in interest-bearing financial instruments or accounts, such as savings accounts, bonds, or loans.

Net Cash Inflow

The difference between the cash receipts and cash disbursements in a given period, indicating the net amount of cash generated.

Operating Activities

Transactions that relate to the primary operations of the company, such as cash received from sales of goods or services and cash paid for inventory, salaries, and rent.

Income Tax Expense

The cost of income taxes a company is obligated to pay to governmental authorities, reflected in its financial statements.