The Equity Method Generally Should Be Used to Account for an Investment

question 46

Multiple Choice

The equity method generally should be used to account for an investment in stock when the level of ownership is

• A) between 20 and 50 percent.
• B) 10 percent or more.
• C) less than 10 percent.
• D) between 10 and 20 percent.

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Definitions:

Substance Abuse Issues

Refers to problems arising from the misuse of alcohol, drugs, or other substances that affect mental and physical health.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Ethnic Identity

A person's sense of belonging to a specific ethnic group, including the customs, culture, and language associated with that group.

Acculturation

The process of adopting the cultural traits or social patterns of another group, especially by a person moving to a new country or community.