Which of the Following Is True with Regard to How

question 31

Multiple Choice

Which of the following is true with regard to how to account for company A's investment in company B's common stock?

• A)The fair value method is used when A owns more than 50% of B.
• B)The equity method is used when A owns from 20% to 50% of B.
• C)The consolidation method is used when A owns less than 20% of B.
• D)All of the above are true.

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Definitions:

Sociobiology

A branch of biology that explores the social behaviors of animals and humans, aiming to understand how evolution has shaped these behaviors.

Genes

Units of hereditary information contained in the DNA of living organisms that encode for the synthesis of proteins and determine inherited characteristics.

Social Practices

Patterns of behavior that are accepted and expected within a society or group, encompassing daily activities, rituals, and traditions.

Multiculturalism

A societal approach that recognizes, appreciates, and seeks to understand the diverse cultures within a community or nation.