A Company Is Referred to as a Parent If It

question 17

Multiple Choice

A company is referred to as a parent if it owns

• A)33% of the debt securities of another company.
• B)100% of the debt securities of another company.
• C)15% of the stock of another company.
• D)more than 50% of the stock of another company.

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Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Generally Accepted Accounting Principles

A set of accounting standards and procedures that are used in the preparation of financial statements in the U.S.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owner's claim on the company's resources.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a company is not profitable.