The Cost Method of Accounting for Long-Term Investments in Shares

question 123

Multiple Choice

The cost method of accounting for long-term investments in shares should be employed when the

• A) investor owns more than 50% of the investee's shares.
• B) investor has significant influence on the investee and the shares held by the investor are marketable equity securities.
• C) fair value of the shares held is greater than their historical cost.
• D) investor's influence on the investee is insignificant.

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Definitions:

Public Service Jobs

Employment positions within governmental organizations or agencies serving the public, often focused on providing administrative, healthcare, educational, or safety services.

Registered Voters

Individuals who have completed the registration process and are eligible to vote in an election.

Population Means

The average of a set of quantitative values or measurements derived from the entire population.

Confidence Interval

An interval of values calculated from sample data, which has a high chance of covering the value of a certain unknown parameter of the broader population.