Preferred stock of a subsidiary is shown as preferred stock in the stockholders' equity section of the consolidated balance sheet.

Question

Quizplus · Accepted Answer

Preferred stock of a subsidiary is not shown in the stockholders' equity section of the consolidated balance sheet because, in consolidation, intercompany stockholdings are eliminated, and only the equity attributable to the parent company's shareholders is presented.

Preferred Stock of a Subsidiary Is Shown as Preferred Stock