If One Company Owns More Than 20% of the Shares

question 88

Multiple Choice

If one company owns more than 20% of the shares of another company and the shares are being held as a long-term investment, which method would normally be used toaccount for this investment?

• A) Straight-line.
• B) Equity.
• C) Fair value.
• D) Effective.
• E) Historical cost.

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Definitions:

Level Seating Surface

A flat or contoured surface designed to support a component securely and evenly, ensuring proper alignment and function.

Fastener

A hardware device that mechanically joins or affixes two or more objects together.

Arrowheads

Styled points at the end of dimension lines or leader lines on a drawing, indicating the feature to which the dimension or note refers.

Cutting-plane Lines

Lines on a drawing indicating the imaginary cut made through a part or assembly to reveal internal features in a sectional view.