Leno Ltd Has Invested in Several Domestic Manufacturing Corporations

question 35

Multiple Choice

Leno Ltd. has invested in several domestic manufacturing corporations. Which of the following investments would most likely be accounted for under the equity method on Leno's financial statements?

• A)A holding of 20,000 of the 25,000 outstanding common shares of Riser Co.
• B)A holding of 3,000 of the 10,000 outstanding preferred shares of Riser Co.
• C)A holding of 15,000 of the 50,000 outstanding common shares of Riser Co.
• D)A holding of 5,000 of the 60,000 outstanding common shares of Riser Co.

---

Definitions:

Parasympathetic

Part of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity.

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, crucial for maintaining physical health.

Sympathetic

Part of the autonomic nervous system that prepares the body for stress-related activities, often referred to as the "fight or flight" response.

Parasympathetic

The part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity.