Which of the Following Is NOT an Indicator of Significant

question 31

Multiple Choice

Which of the following is NOT an indicator of significant influence?

• A)The investor and the investee share office space and use the same accounting firm.
• B)The investor has representation on the investee's board of directors.
• C)There are material transactions between the investor and the investee.
• D)The investor provides computing services to the investee.

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Definitions:

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted to cash within a year.

Current Level

Current level often refers to the present state or condition of a measurable variable, such as production, staffing, or inventory levels.

Financing Activities

Transactions and events where cash is raised or paid back to finance the company's operations, including issuing debt and equity or repaying loans.

Issuing Debt

Issuing debt refers to the process by which a corporation or government raises funds by selling bonds, notes, or other debt instruments to investors.