The Investor Should Generally Use the Equity Method of Accounting

question 67

Multiple Choice

The investor should generally use the equity method of accounting for the investee if the investor owns what percentage of the outstanding stock of the investee?

• A)0% - 15%
• B)20% - 50%
• C)50% - 100%
• D)More than 50%

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Definitions:

Recall Bias

A systematic error caused by differences in the accuracy or completeness of the recollections retrieved by study participants.

Economical

Related to economics or economy, often used to describe something that is cost-effective or does not waste resources.

Controls

Subjects or groups in a study or experiment that are used as a standard of comparison for checking the results of a survey or experiment.

Association

A statistical relationship between two or more variables, which does not necessarily imply a cause-and-effect relationship.