The existence of significant influence by an investor is usually evidenced in one or more of the following ways, except: Representation on the board of directors or equivalent governing body of the investee Participation in the policy-making process The power to govern with financial and operational policies of the entity Provision of essential technical information

The existence of significant influence by an investor is usually evidenced in one or more of the following ways, except: Representation on the board of directors or equivalent governing body of the investee Participation in the policy-making process The power to govern with financial and operational policies of the entity Provision of essential technical information

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter13: Sustainability Reporting

Section: Chapter Questions

Problem 10MC: Which of the following best defines stakeholders? A. investors and lenders B. environmental groups...

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Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation)
Which of the following may provide evidence of significant influence even if the percentage of ownership interest is less than 20\% ? Representation on the board of directors or equivalent governing body of the investee Participation in policy-making processesincluding participation in decisions about dividends or other distributions transactions between the investor and the investee IV Interchange of managenal personnel V. Provision of essential technical information.
A significant influence investment is one that: A. allows the investor to exercise significant influence over only the operating policies of the Associate. B. allows the investor to exercise significant influence over only the financing policies of the Associate. C. allows the investor to exercise significant influence over the strategic, operating, and financing policies of the Associate. D. allows the investor to exercise significant influence over the strategic and operating policies of the Associate.
Significant influence is Group of answer choices Deemed to exist when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. activities. The power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The power to govern the financial and operating policies of an entity so as to obtain benefits from its
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