Asked by Shayan Patel on Jun 29, 2024
Verified
Parker Company owns 83% of the outstanding stock of Tadeo Company. Parker Company is referred to as the
A) parent
B) minority interest
C) affiliate
D) subsidiary
Minority Interest
The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.
Parent Company
A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.
Outstanding Stock
The stock in the hands of stockholders.
- Determine the accounting methods appropriate for different levels of ownership in another company's stock.
Verified Answer
Learning Objectives
- Determine the accounting methods appropriate for different levels of ownership in another company's stock.
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