If a Company Acquires a 40% Ordinary Share Interest in Another

question 192

Multiple Choice

If a company acquires a 40% ordinary share 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:

Temporal Lobes

Regions of the brain located beneath the temples, responsible for processing auditory information and involved in memory and emotion.

Short-term Memories

Memory stored for a brief period of time, usually for about 20 to 30 seconds, that holds a small amount of information before it is forgotten or transferred to long-term memory.

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of information learned previously.

Newer Information

Recently acquired data or knowledge that updates or supersedes previous understanding.