The Three Methods of Accounting for Stock Investments Are the Market

question 11

Multiple Choice

The three methods of accounting for stock investments are the market value method, the consolidation method and the equity method. The appropriate method to use depends on the percentage of ownership. Which of the following statements is true?

• A)When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the consolidation method, equity method, and market value method should be used, respectively.
• B)When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the market value method, consolidation method, and equity method should be used, respectively.
• C)When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the equity method, market value method, and consolidation method should be used, respectively.
• D)When the percentages of ownership are less than 20%, 20%-50%, and greater than 50%, the market value method, equity method, and consolidation method should be used, respectively.

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Definitions:

Little Albert

Refers to a famous psychological experiment by John Watson, demonstrating how phobias can be conditioned in humans.

UCS

An acronym for Unconditioned Stimulus, which in classical conditioning is a stimulus that naturally triggers a response without the need for prior learning.

White Rat

In psychological experiments, particularly those related to the development of phobias, a white rat might be used as a neutral stimulus before conditioning occurs.

Taste Aversion

A learned response in which the taste of a specific food becomes associated with illness or discomfort, leading to a subsequent avoidance of that food.