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

Question

Quizplus · Accepted Answer

Consolidated financial statements are required when an investor has control over an investee firm. This method combines the financial statements of both the investor and the investee, providing a complete picture of the financial status of the group. The other methods listed, such as cost, market value, and lower of cost or market, are used for different purposes and do not apply specifically to situations where an investor has control over an investee firm.

Accountants Require Investors That Have Control Over the Decisions of an Investee