Asked by Morgan McCord on Jun 13, 2024

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Which of the following is the correct matching concerning an investor's influence on the operations and financial affairs of an investee? % of Investor Ownership ‾ Presumed Influence‾\begin{array}{cc} & \underline{ \% \text { of Investor Ownership } }& \underline{ \text { Presumed Influence} } \\\end{array}% of Investor Ownership  Presumed Influence
A)  Less than 20% Short-term \begin{array}{cc} & \text { Less than } 20 \% &&&&&& \text { Short-term } \\\end{array} Less than 20% Short-term 
B)  Between 20%−50% Significant \begin{array}{cc} & \text { Between } 20 \%-50 \% &&& \text { Significant } \\\end{array} Between 20%50% Significant 
C)  More than 50% Long-term \begin{array}{cc} & \text { More than } 50 \% &&&&& \text { Long-term } \\\end{array} More than 50% Long-term 
D)  Between 20%−50% Controlling \begin{array}{cc} & \text { Between } 20 \%-50 \% &&& \text { Controlling }\end{array} Between 20%50% Controlling 

Investor Ownership

The possession of equity in a company, represented by stocks, by investors.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without controlling or jointly controlling the entity.

  • Evaluate the operational and financial considerations impacting the accounting approaches for equity investments.
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YL
Yelisa LeivaJun 14, 2024
Final Answer :
B