Equity process to account for an investment


A company should always use the equity method to account for an investment if:

A. it has the ability to exercise significant influence over the operating policies of the investee.

B. it owns 30% of another company's stock.

C. it has a controlling interest (more than 50%) of another company's stock.

D. the investment was made primarily to earn a return on excess cash.

E. it does not have the ability to exercise significant influence over the operating policies of the investee.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Equity process to account for an investment
Reference No:- TGS053978

Expected delivery within 24 Hours