Use of the Consolidated fiNancial Statement Method of Accounting for a Long-Term

question 64

Multiple Choice

Use of the consolidated financial statement method of accounting for a long-term investment in common stock of another company is required when the ownership of its voting stock is

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

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Definitions:

Six-Figure Accuracy

A level of precision in numerical calculations or measurements that is accurate to six digits.

Solve

To find an answer or solution to a mathematical problem or equation.

Simplify

The process of making something less complex or easier to understand.

Simplify

A mathematical process of making an equation, expression, or problem easier to solve or understand by eliminating complexity.