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:

Autistic Spectrum Disorder

A range of developmental disorders characterized by difficulties in social interaction, communication, and by restricted or repetitive patterns of thought and behavior.

Motor Skills Disorder

A condition that significantly impairs an individual's coordination and movement abilities, affecting daily activities and tasks.

Global Population

The total number of human inhabitants on the planet Earth at any given time.

Social Consequences

The effects of an individual's actions or societal developments on the broader community or social structures, which can be positive or negative.