Which of the Following Methods of Accounting for Investments Is

question 101

Multiple Choice

Which of the following methods of accounting for investments is appropriate when the investor controls the investee?

• A)equity method
• B)consolidation
• C)cost method
• D)lower of cost or market method

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Definitions:

Nucleotide

The basic building block of nucleic acids, such as DNA and RNA, consisting of a sugar, phosphate group, and nitrogenous base.

Purines

Nitrogenous bases with carbon and nitrogen atoms in two attached rings (e.g., adenine and guanine); components of nucleic acids, ATP, GTP, NAD1, and certain other biologically active substances. Compare with pyrimidines.

Pyrimidines

A class of nitrogenous bases found in nucleic acids, including cytosine, thymine (in DNA), and uracil (in RNA).

Carbohydrate

Organic compounds occurring in foods and living tissues, including sugars, starch, and cellulose, serving as a major energy source.