When an investor owns more than 50% of the common shares of another company,
A) consolidated financial statements are usually prepared.
B) the fair value through profit or loss model is used.
C) the investor is called a subsidiary.
D) the investor recognizes revenue only when dividends are received.

Question

Quizplus · Accepted Answer

When an investor owns more than 50% of the common shares of another company, it typically indicates control, and consolidated financial statements are usually prepared to present the financial position and results of operations of the parent and its subsidiaries as a single entity.

When an Investor Owns More Than 50% of the Common