Noncontrolling interest reflects the ownership of noncontrolling shareholders in the equity of consolidated subsidiaries that are less than wholly owned.

Question

Quizplus · Accepted Answer

Noncontrolling interest, also known as minority interest, represents the portion of equity in a consolidated subsidiary that is not owned by the parent company. It reflects the ownership of noncontrolling shareholders in the subsidiary that is less than 100%. Therefore, the statement is true.

Noncontrolling Interest Reflects the Ownership of Noncontrolling Shareholders in the Equity