Help Yourself, a Not-For-Profit Organization, Has a 5% Economic Interest

question 6

Multiple Choice

Help Yourself, a not-for-profit organization, has a 5% economic interest in the Furnishing Bank, another not-for-profit organization. The organizations operate independently, have no directors in common, and have no transactions with each other. For financial reporting purposes, how should Help Yourself account for its interest in the Furnishing Bank?

• A)Consolidation
• B)The equity method
• C)The cost method
• D)Note disclosure only

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Definitions:

Automatic Merchandising

The use of self-service machines or kiosks, such as vending machines, for selling products directly to consumers without human interaction.

Pampered Chef

A company that sells kitchen tools, food products, and cookbooks for preparing food in the home.

Pricing Decisions

The process of determining what price to charge for a product or service, taking into account costs, market demand, and competition.

Direct Distribution Channel

A method where a company sells its products or services directly to consumers without the use of intermediaries.