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which of the following stock investments should be accounted for using the cost method?

Sagot :

the stock investments should be accounted for using the cost method is investments of less than 20%. the correct answer is B.

How Do Stocks Function?

An investment that represents ownership in a portion of the issuing corporation is a stock, which is also known as equity. Shareholders of shares, often referred to as units of stock, are entitled to a piece of the company's assets and earnings in proportion to the number of shares they own.

Stocks, which are typically purchased and sold on stock exchanges, make up the majority of individual investors' portfolios. Trading in stocks must adhere to regulations set forth by the government to protect investors from deceptive practices.

What Is Share Ownership?

Shareholders hold the company's issued shares, and the corporation is the rightful owner of a company's assets. If you only own 33 percent of a company's shares, you cannot claim to own one-third of it. Nevertheless, you do own a third of the company's shares. This refers to the "separation of ownership and control."

your question is incomplete, but most probably your full question was

which of the following stock investments should be accounted for using the cost method?

a. investments of less than 20% and investments between 20% and 50% b. investments of less than 20%

c. investments between 20% and 50%

d. all stock investments should be accounted for using the cost method.

learn more about share ownership brainly.com/question/13715215

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