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erastova [34]
3 years ago
9

Which of the following is not a correct statement about noncontrolling interest?

Business
1 answer:
kicyunya [14]3 years ago
7 0

Noncontrolling interests are entitled to preference in dividends and payouts in liquidation is not a correct statement about noncontrolling interest.

Option B

<u>Explanation: </u>

Non-controlling interest (NCI) is the part of the equity in a corporation not directly related to a parental company that has a controlling interest (above 50% but below 100%) and strengthens the financial results of the corporation with its own.

Suppose, for example, that Alpha acquires 80 percent of Sierra's outstanding stock. As Alpha controls over 50% of the Sierra region, Alpha consolidates the financial performance of Sierra that has its own financial results.

Alpha's balance sheet reports as NCI 20 percent of the Sierra equity which Alpha does not own. In proportion to their amounts of holding, the Incorporated Net Income is assigned to parental and non-controlling interest parties (minority shareholders); 80% to Alpha and, in this situation, 20% to un-controlling interest.

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Explanation:

Initial Price of the  used  book = $73.25

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Answer:

Common stock and $100

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The journal entry is shown below:

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(Being the issuance of the common stock is recorded)

For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity    

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3 years ago
The preferred method for situations involving strategic decision making, projects with a high degree of
Nataly_w [17]
I Found the answer on internet.

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Once a customer has committed to a partnership, less work is needed to maintain the relationship.
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The answer to the given statement above is false, it is because even if a person has entered a partnership, it does not mean less work and effort should be done to maintain the relationship because having no effort in maintaining this relationship could only cause the bond to diminish and destroy. It is best to have an equal amount of work done in order to maintain a relationship with the partner.
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