Statement of Financial Accounting Standards No

question 9

Multiple Choice

Statement of Financial Accounting Standards No.160,"Noncontrolling Interests in Consolidated Financial Statements: An Amendment of ARB No.51",requires that the amount of equity interest provided by outside shareholders of subsidiaries that are not 100 %-owned by the parent company requires this amount be shown as

• A) noncontrolling interest in the liabilities section of the balance sheet.
• B) minority interest in the "mezzanine" section of the balance sheet between liabilities and owners' equity.
• C) noncontrolling interest in the equity section of the balance sheet.
• D) minority interest in the equity section of the balance sheet.

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Definitions:

Total Assets

The total of all current and non-current assets that a company possesses.

Total Equity

The total net value of a company, calculated by deducting total liabilities from total assets; also known as shareholders' equity.

Financial Statements

Papers that offer a summary of a corporation's financial status, featuring its balance sheet, profit and loss account, and statement of cash flows.

Accounting Procedures

The methods and processes used to record, summarize, and report financial transactions.