The use of consolidation 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%.

Consolidation Accounting

A method of accounting in which the financial statements of a parent company and its subsidiaries are combined to present a single economic entity.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote and share in profits through dividends.

Voting Stock

Shares of a company that grant the holder the right to vote on company matters, such as electing the board of directors.