Minority interest appears on the balance sheet of some companies. Minority interest:
A)is classified as a liability.
B)is classified as an equity.
C)arises when a company records investments using the equity method.
D)arises when a company owns controlling interest in another company, but less than 100%.

Question

Quizplus · Accepted Answer

Minority interest is classified as equity because it represents the portion of a subsidiary's equity that is not owned by the parent company, reflecting the ownership interest of minority shareholders in the subsidiary.

Minority Interest Appears on the Balance Sheet of Some Companies