IIA Exam IIA-CIA-Part3-3P Topic 6 Question 39 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 39
Topic #: 6

Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

ACost method

BEquity method

CConsolidation method

DFair value method

Show Suggested Answer

Suggested Answer: D

by Norah at Mar 16, 2024, 02:53 AM

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Suzan

2 months ago

Cost method? Really? That's about as exciting as watching paint dry. Give me the equity method any day - it's like the accounting version of a thrill ride!

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Tawna

2 months ago

Fair value method, all the way! I mean, who doesn't love a good dose of fair value accounting? It's like the accounting equivalent of a fancy dinner party.

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Sabrina

27 days ago

Consolidation method can be complex but is necessary for combining financial statements of two organizations.

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Madelyn

1 months ago

Equity method is also commonly used when buying a significant portion of another organization's stock.

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Shoshana

2 months ago

I agree, fair value method is definitely a popular choice for investor organizations.

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Major

3 months ago

I'm not too sure about this one, but the consolidation method sounds like it might be the way to go for a 40% stake. Gotta love those accounting technicalities!

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