When Is the Equity Method Used to Account for Long-Term

question 88

Multiple Choice

When is the equity method used to account for long-term investments in common stock?

• A)When the investment is between 20% and 50% of the voting stock,regardless of whether or not significant influence can be achieved.
• B)When the investment is greater than 50% of the voting stock,regardless of whether or not significant influence can be achieved.
• C)When the investment is greater than 50% of the voting stock and significant influence can be achieved.
• D)When the investment is between 20% and 50% of the voting stock and significant influence can be achieved.

---

Definitions:

BPH

Benign Prostatic Hyperplasia, a condition in which the prostate gland enlarges, affecting urine flow.

Mitosis

The process of cell division in eukaryotic cells where one cell divides into two genetically identical daughter cells.

Cell Division

The process by which a parent cell divides into two or more daughter cells, crucial for growth and repair.

Spermatozoa

the male reproductive cells or sperm cells that carry a man's DNA.