The consolidated financial statements of XYZ indicate minority interest of $10,000.The total owners' equity is $50,000.The minority interest value reflects:
A) The fraction of the other company's equity that is owned by visible minorities
B) The fraction of the other company's equity that is held by small shareholders
C) The fraction of the other company's equity that is not owned by XYZ's shareholders
D) The fraction of the other company's equity that has been authorized but not yet issued

Question

Quizplus · Accepted Answer

Minority interest represents the portion of a subsidiary's equity that is not owned by the parent company. Therefore, it reflects the fraction of the other company's equity that is not owned by XYZ's shareholders.

The Consolidated Financial Statements of XYZ Indicate Minority Interest of $10,000.The