ACC 499 help A Guide to career/uophelp.com ACC 499 help A Guide to career/uophelp.com | Page 44

When an investor owns less than a majority of the voting stock of
another corporation, the accountant must judge when the investor can
exert significant influence. For the sake of uniformity, U.S. GAAP and
IFRS presume that significant influence exists at ownership of _____ or
more of the voting stock of the investee. (Assume that management
does not have a contractual or other basis to demonstrate that influence.)
Question 5
An intercompany transaction is a transaction between
Question 6
U.S. GAAP and IFRS require firms to account for minority, active
investments, using the _____ method.
Question 7
To avoid double counting P's investment in S, P must eliminate
Question 8
The equity method of accounting for an investment in the common stock
of another company should be used when the investment
Question 9
Paula Company recognizes unrealized changes in the fair value of
available-for-sale securities in
Question 10
For which type of investments would unrealized increases and decreases
be recorded directly in an owners' equity account?
Question 11