Equity Method and Subsidiary Consolidation
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Questions and Answers

What is another term for outside ownership or non-controlling interest?

  • Subsidiary interest
  • NCI (correct)
  • Controlling interest
  • Majority interest

Who are the non-controlling shareholders?

  • Shareholders with more than 50% ownership
  • Shareholders with less than 100% ownership but still have control (correct)
  • Shareholders with exactly 50% ownership
  • Shareholders with no control over the company

In consolidated statements, what do we need to reflect about the non-controlling shareholders?

  • The group of people and what they own (correct)
  • The voting rights of the non-controlling shareholders
  • The financial liabilities of the non-controlling shareholders
  • Only the majority shareholders' interests

What does NCI stand for?

<p>Non-controlling interest (C)</p> Signup and view all the answers

What percentage of ownership characterizes non-controlling shareholders?

<p>Above 50% but less than 100% (B)</p> Signup and view all the answers
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