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

question 39

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:

Ethics In Research

A set of principles aimed at ensuring integrity, honesty, and respect for subjects and data in the process of conducting research.

Experimental Research

A research method involving the manipulation of variables to establish cause-and-effect relationships in controlled conditions.

Cause And Effect

The relationship between events or things, where one is the result of the other or others.

Observational Research

A research method that involves studying subjects without manipulating the environment, often used to gather data in natural settings.