When a firm has noncontrolling interests, analysts may compute and review all except which of the following return on equity ratios?
A. Return on parent company equity where parent company equity includes both common equity and preferred stock.
B. Return on common equity defined as net income attributable to the parent company minus preferred dividends divided by average common equity.
C. Return on total equity net of non-controlling interests where total equity includes common equity and preferred stock, less noncontrolling interests.
D. Return on total equity where total equity includes common equity, preferred stock, and noncontrolling interests.
Answer: C
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A. closed system B. neutral system C. porous system D. subsystem E. isolated system
One of the best ways managers can help build trust is to:
a) ensure that organizational guidelines are followed. b) protect the interests of those who are not present at the time as if they were. c) promote responsibility and total quality expectations. d) demonstrate integrity and ethical behavior.
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What will be an ideal response?
Generally, subsidiary ledgers are used for accounts that consist of a large number of individual items
Indicate whether the statement is true or false