Which statement is true regarding consolidation when there is a noncontrolling interest? Consolidated financial statements should be prepared only if the parent company and the subsidiary do business in a similar area. Only a proportion of the subsidiary should be included in the consolidated financial statements because the parent company has less than 100% of the subsidiary's shares. Noncontrolling interest should not be included in the consolidated financial statements because these outside owners do not have shares in the parent company. A subsidiary should be included in its entirety in the consolidated financial statements. o000
Which statement is true regarding consolidation when there is a noncontrolling interest? Consolidated financial statements should be prepared only if the parent company and the subsidiary do business in a similar area. Only a proportion of the subsidiary should be included in the consolidated financial statements because the parent company has less than 100% of the subsidiary's shares. Noncontrolling interest should not be included in the consolidated financial statements because these outside owners do not have shares in the parent company. A subsidiary should be included in its entirety in the consolidated financial statements. o000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Which statement is true regarding consolidation when there is a noncontrolling interest?
Consolidated fınancial statements should be prepared only if the parent company and the subsidiary do business in a similar area.
Only a proportion of the subsidiary should be included in the consolidated financial statements because the parent company has less than 100% of the subsidiary's shares.
Noncontrolling interest should not be included in the consolidated financial statements because these outside owners do not have shares in the parent company.
A subsidiary should be included in its entirety in the consolidated financial statements.
O 000
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