Which Statements Are Incorrect with Regards to a Consolidation Worksheet

question 40

Multiple Choice

Which statements are incorrect with regards to a consolidation worksheet in the presence of the non-controlling interest:

• A) there is no NCI share extracted from the assets and liabilities section of the worksheet.
• B) two extra columns are added to the worksheet to divide the consolidated equity into the NCI and parent share.
• C) one extra column is added that includes the NCI share of the individual equity accounts.
• D) one extra column is added that includes the parent share of the individual equity accounts.

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Definitions:

Organizational Hierarchy

A system in which people or groups are ranked one above the other according to status or authority within an organization.

Flat Structures

An organizational design characterized by few hierarchical levels, promoting open communication and collaboration among employees.

Organizational Hierarchy

The arrangement of individuals within an organization according to power, status, and job function, forming a structure that outlines reporting relationships and work flow.

Span of Control

The number of subordinates directly managed by a supervisor or the extent of authority an individual manager has over a team.