The Phillipses own a minority interest in a sushi restaurant. If the Phillipses own a 2% minority interest, and the sushi restaurant has $3,000,000 of assets, which of the following statements is not true?
A) The minority interest does not show up on the financial statements.
B) The $60,000 is reported on the financial statements as minority interest.
C) The minority interest is reported between the debt and equity of the company.
D) The minority interest of the Phillipses represents the interest in a company that is not owned by the controlling, parent company.

Question

Quizplus · Accepted Answer

Minority interest is indeed reported on the financial statements, typically in the equity section, to represent the portion of a subsidiary not owned by the parent company.

The Phillipses Own a Minority Interest in a Sushi Restaurant