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    Introduction to Management Accounting
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    Exam 17: Understanding and Analyzing Consolidated Financial Statements
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    Company B Has 40,000 Shares of Its Common Stock Outstanding
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Company B Has 40,000 Shares of Its Common Stock Outstanding

Question 111

Question 111

Multiple Choice

Company B has 40,000 shares of its common stock outstanding.Company A owns 35,000 shares of Company B's stock.What method should Company A use to account for its investment in Company B?


A) market-value
B) equity
C) consolidated
D) cost

Correct Answer:

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