For Non-Consolidated Subsidiaries Where the Parent Owns Less Than a Majority

question 3

Multiple Choice

For non-consolidated subsidiaries where the parent owns less than a majority interest but more than a 20 percent interest,

• A) the equity method is used by a majority of corporations worldwide.
• B) the equity method must be used by U.S. companies.
• C) the cost method recognizes income when earned by the subsidiary.
• D) the equity method recognizes income when a dividend is received by the parent.

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Definitions:

Electrodes

Conductive materials or devices used to make electrical contact with a nonmetallic part of a circuit, often found in batteries, electrolysis processes, and medical devices like ECG machines.

ECG

Electrocardiogram, a medical test that measures the electrical activity of the heart to assess heart health and detect abnormalities.

Electrode

A conductor through which electricity enters or leaves an object, substance, or region, often used in medical devices or for measuring electrical activity in the body.

ECG

Electrocardiogram, a test that measures the electrical activity of the heart to detect heart problems and monitor heart health.