Usually,an Investment of 20 to 50 Percent in Another Company's

question 17

Multiple Choice

Usually,an investment of 20 to 50 percent in another company's voting stock is reported under the:

• A)cost method.
• B)equity method.
• C)full consolidation method.
• D)fair value method.

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Definitions:

Earnings Per Share

A financial metric calculated by dividing a company's profit by the number of its outstanding shares of common stock.

Authorized Common Shares

The maximum number of common stock shares that a corporation is legally permitted to issue, as stated in its articles of incorporation.

Treasury Shares

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock in the open market.

Sydney Tar Ponds

A hazardous waste site in Canada, notorious for its toxic sludge resulting from the byproducts of steel and iron industries.