If 10% of the Common Stock of an Investee Company

question 58

Multiple Choice

If 10% of the common stock of an investee company is purchased as an investment, the appropriate method of accounting for the investment is

• A) the cost method.
• B) the equity method.
• C) the preparation of consolidated financial statements.
• D) determined by agreement with whomever owns the remaining 90% of the stock.

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Definitions:

Gender Constancy

The understanding that one's gender identity is fixed and constant, regardless of changes in appearance or behavior.

Egalitarian

Referring to the principle that all people are equal and deserve equal rights and opportunities.

Sensitivity

Refers to the capacity of an organism or system to respond to stimuli or changes in the environment.

Gender Awareness

The understanding and recognition of gender and gender differences, often developing in early childhood.