When a Company Owns More Than 50% of the Common

question 148

Multiple Choice

When a company owns more than 50% of the common stock of another company

• A) consolidated financial statements are usually prepared.
• B) the cost method of accounting is used.
• C) they are referred to as the subsidiary.
• D) they recognize revenue when dividends are received.

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Definitions:

Foraging Societies

Communities that rely on hunting, fishing, and gathering wild food resources for their subsistence.

Social Organization

The structured arrangement of relationships and institutions within a society, which governs its functioning and order.

Socially Approved

Refers to actions or behaviors that are accepted and endorsed by society or a specific community.

Nuclear Family

A fundamental social group composed of a pair of adults and their offspring.