Which Method of Accounting Will Generally Be Used When One

question 10

Multiple Choice

Which method of accounting will generally be used when one company purchases between 20% to 50% of the outstanding stock of another company?

• A) Only the fair value method may be used.
• B) Only the equity method may be used.
• C) The GAAP prescribed the equity method may be used.
• D) Neither the fair value method nor the equity method may be used, regardless of the level of ownership.

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Definitions:

Socioemotional Themes

Topics that relate to both social interactions and emotional experiences or expressions.

Helper Therapy Principle

suggests that the act of helping others can also benefit the helper, often leading to improved well-being for both parties.

Treatment Groups

Groups formed with the purpose of providing therapeutic interventions to its members, addressing various mental, emotional, or physical issues.

Reference Groups

Social groups that individuals compare themselves to for self-evaluation or guidance in forming attitudes and behavior.