Which of the following is the correct matching concerning the appropriate accounting for long-term stock investments? % of Investor Ownership ‾ Accounting Guidelines ‾ \begin{array}{llcc} \underline{ ext { \% of Investor Ownership }} & \underline{ ext { Accounting Guidelines }} \\end{array} % of Investor Ownership Accounting Guidelines A) Less than 20 % Cost method \begin{array}{ll} ext { Less than } 20 \% & & & & & ext { Cost method } \\end{array} Less than 20% Cost method B) Between 20 % − 50 % Cost method \begin{array}{ll} ext { Between } 20 \%-50 \% & & ext { Cost method } \\end{array} Between 20% − 50% Cost method C) More than 50 % Cost or equity method \begin{array}{ll} ext { More than } 50 \% & & & & ext { Cost or equity method } \\end{array} More than 50% Cost or equity method D) Between 20 % − 50 % Consolidated financial statements \begin{array}{ll} ext { Between } 20 \%-50 \% & & ext { Consolidated financial statements }\end{array} Between 20% − 50% Consolidated financial statements

Question

Which of the following is the correct matching concerning the appropriate accounting for long-term stock investments?   %  of Investor Ownership  ‾  Accounting Guidelines  ‾ \begin{array}{llcc} \underline{  	ext {  \%   of Investor Ownership  }}  &   \underline{ 	ext { Accounting Guidelines }} \\end{array} % of Investor Ownership  ​ ​  Accounting Guidelines  ​ ​ A)   Less than  20 %  Cost method  \begin{array}{ll}	ext { Less than } 20 \%  & & & & &  	ext { Cost method } \\end{array}  Less than  20% ​ ​ ​ ​ ​  Cost method  ​ B)   Between  20 % − 50 %  Cost method  \begin{array}{ll}	ext { Between } 20 \%-50 \%  & &  	ext { Cost method } \\end{array}  Between  20% − 50% ​ ​  Cost method  ​ C)   More than  50 %  Cost or equity method  \begin{array}{ll}	ext { More than } 50 \%  & & & &  	ext { Cost or equity method } \\end{array}  More than  50% ​ ​ ​ ​  Cost or equity method  ​ D)   Between  20 % − 50 %  Consolidated financial statements  \begin{array}{ll}	ext { Between } 20 \%-50 \%  & &  	ext { Consolidated financial statements }\end{array}  Between  20% − 50% ​ ​  Consolidated financial statements  ​

Karan Gupta · Accepted Answer

Final Answer : A

Definitions

Learning Objectives

Learning Objectives

Related questions