The Equity Method of Accounting for an Investment Is Used

question 137

Multiple Choice

The equity method of accounting for an investment is used when a company purchases

• A)more than 20% of the debt securities of a second company.
• B)100% of the debt securities of a second company.
• C)15% of the equity securities of a second company.
• D)more than 20% of the equity securities of a second company.

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Definitions:

Covalent Bonding

A chemical bond that involves the sharing of electron pairs between atoms, stabilizing them and making the atoms bound together in a molecule.

Protobionts

Assemblages of organic polymers that spontaneously form under certain conditions. Protobionts may have been involved in chemical evolution.

Abiotically Produced

Referring to substances or processes occurring without the involvement of biological organisms, typically through physical or chemical phenomena.

Ribozymes

RNA molecules capable of catalyzing specific biochemical reactions, similar to protein enzymes.