The Equity Method of Accounting for a Stock Investment Should

question 16

Multiple Choice

The equity method of accounting for a stock investment should generally be used when the investor owns a level of stock ownership that:

• A)gives the investor minor influence over the investee.
• B)usually indicates a plan to acquire a controlling interest in the investee company.
• C)requires the investor to prepare consolidated financial statements.
• D)gives the investor significant influence over the investee company.

---

Definitions:

Antigens

Substances that stimulate the body to mount an immune system response to it (short for antibody generator).

Biological Factors

Aspects related to living organisms and biological systems that influence behavior, health, and development.

Pathogens

Pathogens are microorganisms, such as bacteria, viruses, fungi, or parasites, that can cause disease in their host.

General Adaptation Syndrome

A three-phase model (alarm, resistance, exhaustion) describing the physiological responses to stress, developed by Hans Selye.