When an Investor Owns Between 20% and 50% of the Outstanding

question 18

Multiple Choice

When an investor owns between 20% and 50% of the outstanding stock of another company,the ________ method is used to account for the stock investment.

• A)fair value
• B)equity
• C)consolidated
• D)available-for-sale

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Definitions:

Strike-Slip Fault

A type of fault in which two blocks of the Earth's crust slide past each other horizontally along the fault plane.

Reverse Fault

A type of fault where the hanging wall moves up relative to the footwall, often created by compressive forces.

Normal Fault

A type of fault where the hanging wall has moved downward relative to the footwall, typically associated with extensional tectonics.

Horizontal Compression

A stress regime where forces push inwards from opposite sides, often leading to folding, faulting, or shortening of the Earth's crust.