If a Company Acquires a 40% Common Stock Interest in Another

question 137

Multiple Choice

If a company acquires a 40% common stock interest in another company

• A) the equity method is usually applicable.
• B) all influence is classified as controlling.
• C) the cost method is usually applicable.
• D) the ability to exert significant influence over the activities of the investee does not exist.

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Definitions:

Datasheet View

A display format in database applications that shows records in rows and columns, similar to a spreadsheet.

Infinity Symbol

A mathematical symbol representing the concept of infinity, typically depicted as a horizontal figure eight ( ∞ ).

One-To-Many Relationship

A type of relationship in databases where a single record in one table can be associated with multiple records in another table.

Expand Button

A user interface element that when clicked, reveals additional content or expands a section to show more information.