For Accounting Purposes, What Determines the Method Used to Account

question 78

Multiple Choice

For accounting purposes, what determines the method used to account for investments in common shares?

• A)The amount the investor paid for the shares.
• B)The extent of an investor's influence over the operating and financial affairs of the investee.
• C)Whether the investor's acquisition of the shares was through a private placement or through a public exchange.
• D)Whether the investing corporation wants to prepare consolidation or individual financial statements.

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Definitions:

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