Permanent stockholders' equity represents an outside claim (from the permanent stockholders' perspective) on the net assets of a subsidiary.

Question

Quizplus · Accepted Answer

Permanent stockholders' equity represents the residual interest in the net assets of a subsidiary after all other claims have been satisfied. This residual interest is an outside claim from the perspective of the permanent stockholders, as they are not entitled to any specific assets of the subsidiary.

Permanent Stockholders' Equity Represents an Outside Claim (From the Permanent