ACC 499 help A Guide to career/uophelp.com ACC 499 help A Guide to career/uophelp.com | Page 37

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 3
U.S. GAAP view investments of between 20 and 50 percent of the
voting stock of another company (unless evidence indicates that
significant influence cannot be exercised) as
Question 4
When an investor uses the equity method to account for investments in
common stock, cash dividends received by the investor from the
investee should be recorded as
Question 5
U.S. GAAP view investments of less than 20 percent of the voting stock
of another company as
Question 6
To avoid double counting P's investment in S, P must eliminate
Question 7
The equity method of accounting for an investment in the common stock
of another company should be used when the investment
Question 8
An intercompany transaction is a transaction between
Question 9