The Wellness Society, a Not-For-Profit Organization, Owns 30% of Walk

question 37

Multiple Choice

The Wellness Society, a not-for-profit organization, owns 30% of Walk for Canada, also a not-for-profit organization. The two organizations operate independently and have no board members in common. How should the Wellness Society account for its investment in Walk for Canada?

• A)Cost method
• B)Equity method
• C)Equity method with supplemental disclosure
• D)Note disclosure with a description of the relationship and nature and extent of its economic interest

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Definitions:

Consumer's Purchase

The act of a consumer buying products or services for personal use.

Public Relations

The practice of managing and disseminating information from an organization to the public to influence their perception.

IMC

Integrated Marketing Communications, a strategy aimed at unifying different marketing methods such as mass advertising, social media, and direct marketing to create a cohesive and consistent message.

Aggregate Spending

The total amount of expenditure made by all entities in an economy, including households, businesses, and the government, on goods and services.