When Is the Equity Method Not Used to Account for Long-Term

question 33

Multiple Choice

When is the equity method not used to account for long-term investments in stocks?

• A) When the investment is 30% of the voting stock and significant influence can be achieved.
• B) When the investment is 15% and significant influence can be achieved.
• C) When the investment is greater than 50% of the voting stock and control is achieved.
• D) When the investment is 40% of the voting stock and significant influence can be achieved.

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Definitions:

Molar Heat

The amount of heat absorbed or released by one mole of a substance during a phase change, without a change in temperature.

Combustion

A chemical process involving the rapid oxidation of substances, resulting in the release of heat, light, and products like CO2 and water.

Cyclopentane

A cycloalkane with a five-carbon ring structure, noted for being a more flexible ring compared to other cycloalkanes due to less strain.

Molar Heat

The amount of heat absorbed or released by one mole of a substance during a phase change or chemical reaction without a change in temperature.