How is the non-controlling interest treated in the consolidated balance sheet?
A)It is included in long-term liabilities.
B)It appears between the liability and equity sections of the balance sheet.
C)It is included in total as a component of shareholders' equity.
D)It is included in shareholders' equity and broken down into par, paid-in capital in excess of par and retained earnings.

Question

How is the non-controlling interest treated in the consolidated balance sheet?
A)​It is included in long-term liabilities.
B)​It appears between the liability and equity sections of the balance sheet.
C)​It is included in total as a component of shareholders' equity.
D)​It is included in shareholders' equity and broken down into par, paid-in capital in excess of par and retained earnings.

Quizplus · Accepted Answer

The non-controlling interest is included in the consolidated balance sheet as a component of shareholders' equity, specifically as a separate line item under equity. This represents the portion of the subsidiary that is owned by external shareholders and not the controlling company. It is not classified as a liability and is not broken down into par, paid-in capital in excess of par and retained earnings.

How Is the Non-Controlling Interest Treated in the Consolidated Balance