Company A owns shares of Company B and Company C.The statements of Company B are consolidated with those of Company A.The statements of Company C are not consolidated.Company A reports "Noncontrolling Interest" on its balance sheet.This account represents:
A)A's noncontrolling share of the stock of B.
B)A's noncontrolling share of the stock of C.
C)the noncontrolling share by outside owners of the stock of A.
D)the noncontrolling share by outside owners of the stock of B.
E)the noncontrolling share by outside owners of the stock of C.

Question

Quizplus · Accepted Answer

Noncontrolling interest on a balance sheet represents the share of ownership in a subsidiary (in this case, Company B, whose statements are consolidated with Company A) that is not owned by the parent company (Company A). It reflects the equity interest in a subsidiary held by investors other than the parent company.

Company a Owns Shares of Company B and Company C