The Equity Method of Accounting for an Investment Is Used

question 27

Multiple Choice

The equity method of accounting for an investment is used when a company purchases

• A)more than 20% of the debt securities of another company.
• B)100% of the debt securities of another company.
• C)15% of the equity securities of another company.
• D)between 20-50% of the equity securities of another company.

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Definitions:

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem.

Conservation Group

An organization that aims to preserve, protect, and restore the environment and wildlife.

Mass Extinction

A significant and rapid decrease in the diversity and abundance of life on Earth, often due to catastrophic events.

Natural Process

A sequence of events or phenomena that occurs in the natural world without human intervention.