Use of the consolidated financial statement method of accounting for a long-term investment in common stock of another company is required when the ownership of its voting stock is
A)20% or more.
B)less than 20%.
C)between 20% and 50%.
D)more than 50%.

Question

Quizplus · Accepted Answer

An investment of more than 50% of the outstanding voting stock results in consolidation accounting.

Use of the Consolidated Financial Statement Method of Accounting for a Long-Term