Asked by Morgan McCord on Jun 13, 2024
Verified
Which of the following is the correct matching concerning an investor's influence on the operations and financial affairs of an investee? % of Investor Ownership ‾ Presumed Influence‾\begin{array}{cc} & \underline{ \% \text { of Investor Ownership } }& \underline{ \text { Presumed Influence} } \\\end{array}% of Investor Ownership Presumed Influence
A) Less than 20% Short-term \begin{array}{cc} & \text { Less than } 20 \% &&&&&& \text { Short-term } \\\end{array} Less than 20% Short-term
B) Between 20%−50% Significant \begin{array}{cc} & \text { Between } 20 \%-50 \% &&& \text { Significant } \\\end{array} Between 20%−50% Significant
C) More than 50% Long-term \begin{array}{cc} & \text { More than } 50 \% &&&&& \text { Long-term } \\\end{array} More than 50% Long-term
D) Between 20%−50% Controlling \begin{array}{cc} & \text { Between } 20 \%-50 \% &&& \text { Controlling }\end{array} Between 20%−50% Controlling
Investor Ownership
The possession of equity in a company, represented by stocks, by investors.
Significant Influence
The power to participate in the financial and operating policy decisions of an investee, without controlling or jointly controlling the entity.
- Evaluate the operational and financial considerations impacting the accounting approaches for equity investments.
Verified Answer
YL
Learning Objectives
- Evaluate the operational and financial considerations impacting the accounting approaches for equity investments.