Which Method of Accounting Will Generally Be Used When One

question 35

Multiple Choice

Which method of accounting will generally be used when one company purchases less than 20% of the outstanding stock of another company?

• A)Only the fair value method may be used.
• B)Only the equity method may be used.
• C)Either the fair value method or the equity method may be used,depending upon the relationship between the companies.
• D)Only the acquisition method.

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Definitions:

Environmentally Friendly

Practices or products that are not harmful to the environment, often emphasizing conservation of resources and reduction of pollution.

Competitive Product

A product that is offered in the same market as others, competes for the same customers, and serves a similar purpose.

Florida Department

This term is too vague to provide a specific definition without additional context. It could refer to any department within the state of Florida's government or institutions.

Orange Juice

A beverage made by squeezing or reaming oranges, consumed for its flavor and health benefits.