A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as
A) majority interest.
B) noncontrolling interest.
C) earned capital.
D) unearned capital.

Question

Quizplus · Accepted Answer

Noncontrolling interest represents the portion of equity in a subsidiary not attributable to the parent company, even when the parent owns a majority of the shares.

A Component of Equity That Arises When a Parent Company