The Consolidation Method of Accounting Is Appropriate When an Investor

question 128

True/False

The consolidation method of accounting is appropriate when an investor controls an investee by ownership of more than 50% of the investee's common stock.

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Definitions:

X-intercept

The point where a curve intersects the x-axis on a graph, indicating where the function has a value of zero.

Y-intercept

The point where a line or curve intersects the y-axis of a graph.

Absolute Value

The distance of a number from zero on the number line, without considering which direction from zero the number lies.

Sketch Graph

A rough drawing of a graph to represent a mathematical function or equation visually.