What Method Must Be Used If FASB Statement No

question 27

Multiple Choice

What method must be used if FASB Statement No.94 prohibits full consolidation of a 70% owned subsidiary?

• A)The cost method
• B)The Liquidation value
• C)Market value
• D)Equity method

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Definitions:

Specialized

Referring to a focus on a particular area or sector, often implying a high level of expertise or proficiency in that specific field.

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Net Profit Margin

A financial ratio indicating the percentage of revenue that remains as net profit after all expenses are deducted from total revenues.

Leverage

The use of various techniques or borrowed capital (debt) to increase the potential return of an investment.