In consolidated financial statements, it is expected that:
A) Dividends declared equals the sum of the total parent company's declared dividends and the total subsidiary's declared dividends.
B) Retained Earnings equals the sum of the controlling interest's separate retained earnings and the noncontrolling interest's separate retained earnings.
C) Common Stock equals the sum of the parent company's outstanding shares and the subsidiary's outstanding shares.
D) Net Income equals the sum of the income distributed to the controlling interest and the income distributed to the noncontrolling interest.

Question

Quizplus · Accepted Answer

In consolidated financial statements, net income is the total income of the parent and its subsidiaries, which is then allocated between the controlling interest (parent) and the noncontrolling interest (minority shareholders).

In Consolidated Financial Statements, It Is Expected That