The Equity Method Should Generally Be Used to Account for an Investment

question 98

Multiple Choice

The equity method should generally be used to account for an investment in stock when the level of ownership is

• A) less than 10%.
• B) between 10% and 20%.
• C) between 20% and 50%.
• D) 10% or more.

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Definitions:

Amino Acids

Amino acids are organic compounds that combine to form proteins, serving as the building blocks of life, containing an amino group (-NH2) and a carboxyl group (-COOH).

Sucrose

A disaccharide sugar composed of glucose and fructose, commonly known as table sugar, used extensively as a sweetener.

Fructose

A simple sugar found in many plants, sweeter than glucose and often used in the food and beverage industry.

Glucose

A simple sugar that is an important source of energy and a metabolic intermediate.