The view that the noncontrolling interest in income reflects the noncontrolling stockholders' allocated share of consolidated income is consistent with the:
A) economic unit concept.
B) parent company concept.
C) current practice concept.
D) historical cost company concept.

Question

Quizplus · Accepted Answer

The economic unit concept views the consolidated entity as a single economic entity, regardless of the legal boundaries of individual companies. Therefore, it considers the noncontrolling interest in income as the noncontrolling stockholders' allocated share of the consolidated income, reflecting their economic interest in the consolidated entity.

The View That the Noncontrolling Interest in Income Reflects the Noncontrolling