If One Company Owns More Than 50% of the Common

question 10

Multiple Choice

If one company owns more than 50% of the common shares of another company

• A)the cost method should be used to account for the investment.
• B)a partnership exists.
• C)a parent-subsidiary relationship exists.
• D)the company whose shares are owned must be liquidated.

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Definitions:

Hyperventilation

A condition where breathing is rapid and deep, leading to excessive expulsion of circulating carbon dioxide.

Serum pH

A measure of the acidity or alkalinity of the serum, the clear liquid that can be separated from clotted blood, crucial for diagnosing and managing various health conditions.

Hemiparesis

Weakness on one side of the body, which can be a result of various neurological injuries or conditions.

Bronchitis

An inflammation of the bronchial tubes in the lungs, resulting in coughing and difficulty breathing, which can be acute or chronic.