Match each of the definitions that follow with the appropriate investment term (a-j).
-The method of reporting an investment that represents less than 20% of the voting stock of another company
A)Debt securities
B)Equity securities
C)Investor
D)Investee
E)Cost method
F)Trading securities
G)Available-for-sale securities
H)Held-to-maturity securities
I)Equity method
J)Business combination

Question

Quizplus · Accepted Answer

The cost method is used to report an investment that represents less than 20% of the voting stock of another company.

(Note: None of the other definitions given match the description of the cost method.)

Match Each of the Definitions That Follow with the Appropriate