1) Accountants require investors without significant influence over the decisions of an investee firm to use the ________ method.

A) equity

B) cost

C) market value

D) lower of cost or market

2) Accountants require investors with significant influence, but not control, over the decisions of an investee firm to use the ________ method.

A) equity

B) cost

C) market value

D) lower of cost or market

3) Accountants require investors that have control over the decisions of an investee firm to use the ________ method.

A) consolidated financial statements

B) cost

C) market value

D) lower of cost or market

4) The company that owns 100 percent of another company's stock is called the ________. The company that is controlled by another company is called the ________.

A) majority interest; minority interest

B) controlling interest; noncontrolling interest

C) parent; subsidiary

D) subsidiary; segment

5) A subsidiary is a company that owns more than 50 percent of another company's outstanding common stock.(T/F)