A Non-Controlling Interest Is Entitled to a Share of Which

question 2

Multiple Choice

A non-controlling interest is entitled to a share of which of the following items?
I Equity of the parent at acquisition date
II Current period profit or loss of the subsidiary entity
III Changes in equity of the subsidiary since acquisition date and the beginning of the financial period
IV Equity of the subsidiary at acquisition date

• A) I, II and III
• B) I and II only
• C) II, III and IV only
• D) III only.

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Definitions:

Negative Cash Effect

A situation where a company's cash outflows exceed its cash inflows, indicating a drain on the company's cash resources.

Accumulated Depreciation

A contra-asset account that summarizes or accumulates the amount of depreciation that has been taken on an asset.

Original Cost

The initial purchase price or cost of acquiring an asset including any additional expenses necessary to get it operational.

Cash Provided

The liquidity generated by a company's operations, which may include cash from revenue as well as financing and investing activities.