Question

When preparing a consolidated balance sheet, the noncontrolling interest amount is:

a. Not disclosed on the balance sheet.
b. Generally presented as a part of liabilities.
c. Generally presented as a part of stockholders' equity.
d. Always presented as a part of stockholders’ equity.

Answer 1

Answer:C - Generally presented as a part of stockholders' equity

Explanation: The non controlling interest amount is generally presented in the consolidated financial statement as part of stakeholders equity. The non controlling interest is also known as the minority interest. The non controlling interest arises where the parent company has less than 100% ownership in the business.