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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10 days ago

I agree with Janessa, the Equity method makes sense when the investor has between 20-50% ownership.

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12 days ago

I think the investor organization would use the Equity method because they have significant influence over the other organization.

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12 days ago

B) Equity method

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