A company should always use the equity method to account for - 12321

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $0.50
  • From: Business,
  • Posted on: Sun 08 Jul, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

12. A company should always use the equity method to account for an investment if (Points : 1)
        it has the ability to exercise significant influence over the operating policies of the investee
        it owns 30% of another company's stock
        it has a controlling interest (more than 50%) of another company's stock
        the investment was made primarily to earn a return on excess cash
        it does not have the ability to exercise significant influence over the operating policies of the investee

Solution Description

12. A company should always use the equity method to account for an investment if (Points : 1)
        it has the ability to exercise significant influence over the operating policies of the investee
 &n