When a company owns more than 50% of the common stock of another company
A) consolidated financial statements are usually prepared.
B) the cost method of accounting is used.
C) they are referred to as the subsidiary.
D) they recognize revenue when dividends are received.

Question

Quizplus · Accepted Answer

When a company owns more than 50% of another company's common stock, it typically has control over that company, and consolidated financial statements are prepared to present the financial position and results of operations of the parent and its subsidiaries as a single entity.

When a Company Owns More Than 50% of the Common