The Equity Method of Accounting for an Investment Is Used

question 7

Multiple Choice

The equity method of accounting for an investment is used when a company purchases

• A) More than 20% of the debt securities of a second company.
• B) 100% of the debt securities of a second company.
• C) 15% of the equity securities of a second company.
• D) More than 20% of the equity securities of a second company.

---

Definitions:

Competitive Reporting

The journalistic practice of seeking to report news more accurately, thoroughly, or speedily than competitors, often to gain greater readership or viewership.

Corporate Interests

The objectives or priorities of businesses and corporations, often focused on profit-making, market expansion, and shareholder value.

Edward Herman

An American economist, media analyst, and co-author of the "Manufacturing Consent," known for his work on media and propaganda.

Normalizes Inequality

The process by which societal norms and practices make disparities in income, wealth, and power seem natural or unavoidable.