Which of the following is not a correct statement about noncontrolling interest?
A) Noncontrolling interest is reported as a component of stockholders' equity on the balance sheet.
B) Noncontrolling interest represents their claim to their proportionate share of the net assets and net income of the subsidiary in which they own stock.
C) Noncontrolling interest is a residual claim, like that of any other shareholder.
D) Noncontrolling interests are entitled to preference in dividends and payouts in liquidation.

Question

Quizplus · Accepted Answer

Noncontrolling interests do not typically receive preference in dividends and payouts in liquidation. Instead, they share in the equity and earnings of a subsidiary pro rata, without special preference over the controlling interest.

Which of the Following Is Not a Correct Statement About