The Equity Method Is Applied

question 14

Multiple Choice

The equity method is applied:

• A)when one of the parties is designated as no longer being a subsidiary.
• B)when a contractual agreement is written up providing joint control.
• C)from the date the investor obtains significant influence over the investee.
• D)on that date when it becomes clear that an investor has no power to participate in the financial and operating decisions of the investee.

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Definitions:

Anthropoid Ancestor

The common ancestor of both apes and humans, belonging to the primate group known as anthropoids that exhibit characteristics like upright posture and increased brain size.

First Primates

The earliest members of the primate lineage, believed to have appeared in the Paleocene era, characterized by traits such as forward-facing eyes and grasping hands.

Fossil Evidence

Physical remnants of organisms, such as bones, shells, or leaves, preserved in rock, providing insight into the history of life on Earth.

Opposable Thumb

The arrangement of the fingers so that they are positioned opposite the thumb, enabling the organism to grasp objects.