Asked by
Kaitlyn Paciolla
on Oct 16, 2024
Verified
A controlling influence over the investee is based on the investor owning voting stock exceeding:
A) 10%.
B) 20%.
C) 30%.
D) 40%.
E) 50%.
Controlling Influence
The power to direct the financial and operating policies of another entity so as to obtain benefits from its activities.
Investee
A company or entity in which an investor holds a minority ownership, typically less than 50%.
Voting Stock
Shares that give the shareholder voting rights in a company's decisions.
- Recognize the significance of ownership percentages in determining the method of accounting for investments.
Verified Answer
AL
Learning Objectives
- Recognize the significance of ownership percentages in determining the method of accounting for investments.