Which of the Following Is the Correct Matching Concerning the Appropriate

question 117

Short Answer

Which of the following is the correct matching concerning the appropriate accounting for long-term stock investments? $\begin{array}{llcc} \underline{ \text {\( \% \) of Investor Ownership }} & \underline{ \text { Accounting Guidelines }} \\\end{array}$
A) $\begin{array}{ll}\text { Less than } 20 \% &&&&& \text { Cost method } \\\end{array}$
B) $\begin{array}{ll}\text { Between } 20 \%-50 \% && \text { Cost method } \\\end{array}$
C) $\begin{array}{ll}\text { More than } 50 \% &&&& \text { Cost or equity method } \\\end{array}$
D) $\begin{array}{ll}\text { Between } 20 \%-50 \% && \text { Consolidated financial statements }\end{array}$

• A)\(\begin{array}{ll}
• \text { Less than } 20 \% &&&&& \text { Cost method } \\\end{array}\)
• B)\(\begin{array}{ll}\text { Between } 20 \%-50 \% && \text { Cost method } \\\end{array}\)
• C)\(\begin{array}{ll}\text { More than } 50 \% &&&& \text { Cost or equity method } \\\end{array}\)
• D)\(\begin{array}{ll}\text { Between } 20 \%-50 \% && \text { Consolidated financial statements }
• \end{array}\)

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Definitions:

Federal Law

Legislation enacted by the national government of a country, which has precedence over state laws in areas specifically delegated to the national authority.

Disclose

To make known or public; revealing information that was previously secret or unknown.

Pay

Compensation given by an employer to an employee for services rendered.

Checks

Financial instruments issued against a bank account, allowing the person named to withdraw a specific amount of money from the account.