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

question 58

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.

---

Definitions:

Reduce Costs

Measures or strategies implemented to decrease expenses and financial outlays.

Listen Effectively

The skill of paying close attention to someone's words, understanding the message being conveyed, and responding appropriately, which is crucial for effective communication.

Strengthen Relationships

The process of improving and deepening bonds between individuals or groups through effective communication, trust-building, and shared experiences.

Linea Alba

A fibrous structure that runs down the midline of the abdomen, forming part of the abdominal wall.