Which statement is not correct about "control"?
A)Control is presumed when an entity has more than 50% of the voting power of the investee.
B)Having control allows the entity to direct the strategic operations of the investee.
C)Control is presumed when an entity owns more than 50% of the investee.
D)Consolidation is used when an entity has control over the investee.

Question

Quizplus · Accepted Answer

Control is not solely presumed by owning more than 50% of the investee; it involves the ability to direct relevant activities and affect returns.

Which Statement Is Not Correct About "Control