The equity method of accounting for an investment is used when a company purchases
a. More than 20% of the debt securities of a second company.
b. 100% of the debt securities of a second company.
c. 15% of the equity securities of a second company.
d. More than 20% of the equity securities of a second company.
d
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Under the equity method, the receipt of cash dividends on an investment in common stock of Vallerio Corporation is accounted for as a debit to Cash and a credit to
a. Investment in Vallerio b. Retained Earnings c. Dividend Revenue d. Dividend Receivables
An appropriate red flag search to detect kickbacks or other fraud being committed by vendors would include:
a. invoices without valid purchase order. b. employee and vendor telephone numbers are the same. c. purchase orders with zero dollar amounts by buyer. d. price increases greater than 20% for several consecutive years.
______ programs provide employers with high return on investment and help with productivity, absenteeism, and turnover.
A. Ergonomics B. Spillover C. Utilization D. Wellness
Which of the following would not appear on a budgeted income statement?
A) Net income B) Depreciation expense C) Cost of goods sold D) Cash received from bank loan.