When a Corporation Owns More Than 50 Percent of the Voting

question 26

Multiple Choice

When a corporation owns more than 50 percent of the voting stock in another corporation,it usually should report its investment by using (the)

• A)equity method.
• B)cost adjusted to market method.
• C)book value method.
• D)consolidated financial statements.

---

Definitions:

Technological Knowledge

The understanding and application of technology, including the methods and techniques used for the production of goods and services.

Better Business Bureau

An organization focused on enhancing marketplace trust by setting standards for ethical business behavior and monitoring compliance among its members.

Consumer Product Safety Commission

A U.S. government agency responsible for protecting the public from unreasonable risks of injury or death associated with the use of thousands of types of consumer products.

Voluntary Alliance

A partnership formed by choice between organizations or individuals to achieve a common goal.