Consolidated shareholders' equity:
A) does not include any non-controlling Interest.
B) is equal to the sum of the Shareholders' Equity Sections of the parent and the subsidiary.
C) is equal to that of the parent company under the Equity Method.
D) is higher under the Equity Method when the subsidiary does not declare dividends.

Question

Quizplus · Accepted Answer

Under the Equity Method, the parent's shareholders' equity reflects its share of the subsidiary's net assets, which is included in the parent's equity, not added separately.

Consolidated Shareholders' Equity