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:

Dementia

A syndrome associated with an ongoing decline of brain functioning, affecting memory, thinking, problem-solving, language, and often changing behavior.

Orientation

The awareness of oneself in relation to time, place, and the identities of persons and events, often used in the context of mental and cognitive health.

ADLs

Activities of Daily Living, which are the routine activities people do every day without assistance, such as eating, bathing, dressing, toileting, walking, and continence.

Ibuprofen

A nonsteroidal anti-inflammatory drug (NSAID) used to reduce fever, pain, and inflammation.