All of the Following Are Acceptable Methods to Account for a Majority-Owned

question 102

Multiple Choice

All of the following are acceptable methods to account for a majority-owned investment in subsidiary except

• A) The equity method.
• B) The initial value method.
• C) The partial equity method.
• D) The fair-value method.

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Definitions:

Avoid

To keep oneself from doing something, or to prevent a particular outcome from happening.

Transaction

An instance of buying or selling something; a business deal or action.

Utmost Good Faith

A legal doctrine requiring parties in certain types of contracts, such as insurance, to act honestly and disclose all relevant information.