All of the Following Are Acceptable Methods to Account for a Majority-Owned

question 69

Multiple Choice

All of the following are acceptable methods to account for a majority-owned investment in subsidiary except

• A) The equity method.
• B) The initial value method.
• C) The partial equity method.
• D) The fair-value method.
• E) Book value method.

---

Definitions:

Parts Division

A segment within a company or manufacturer specializing in the production or distribution of spare and replacement parts for products.

Machine Division

A specialized segment within a manufacturing operation focused on the use of machines for production purposes.

Logistics Department

The division within a company responsible for the management of the movement of goods and services from suppliers to customers.

Operating Divisions

Distinct segments within a company, each responsible for certain operations or business units.