The Parent Company Concept of Consolidated Financial Statements Considers the Noncontroling

question 21

Multiple Choice

The parent company concept of consolidated financial statements considers the noncontroling interest in net assets of a subsidiary to be:

• A) A liability
• B) A part of consolidated stockholders' equity
• C) An item between liabilities and stockholders' equity
• D) Some other classification

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Definitions:

Dominance

A state or condition of having power and influence over others, often observed in social, ecological, or hierarchical relationships.

Moderator

An independent variable in research that can affect the strength or direction of the relationship between a dependent and an independent variable.

Catalyst

A substance or agent that increases the rate of a chemical reaction without itself undergoing any permanent chemical change, or metaphorically, something that triggers a significant event or change.

Transmitter

A device or system that sends out signals, messages, or other forms of communication through various forms of media.