Gumble Ltd

question 2

Multiple Choice

Gumble Ltd. has owned 65% of the common shares of Lopez for several years. This year, Gumble reduced its interest in Lopez to 10%. Which of the following statements is true?

• A)Gumble must change from reporting under consolidation to the equity method.
• B)Gumble must change from reporting under consolidation to the cost method.
• C)Gumble must change from reporting under the equity method to the cost method.
• D)Gumble is not required to change its reporting method.

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Definitions:

Role-Playing

A technique involving acting out roles, often used in therapy and education to teach social skills or simulate situations.

Sociocultural Model

A theory used in psychology that examines how social and cultural factors influence an individual's behavior and mental processes.

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A professional in psychology or sociology who studies the family unit's dynamics and how they affect individual behavior and mental health.