The Equity Method of Accounting Is Used If the Investor

question 94

True/False

The equity method of accounting is used if the investor owns at least 20% of the investee and the investor is able to secure influence over the investee.

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Definitions:

Distribution

The process of making a product or service available for the consumer or business user that needs it.

Customer Servicing

The provision of services to customers before, during, and after a purchase to enhance their satisfaction and loyalty.

Finished Goods

These are products that have completed the manufacturing process and are ready for sale.

Customer Costs

Expenses that a customer incurs as a result of doing business with a company, including purchase price, maintenance, and operational costs.