81) A company that owns less than 20% of another company's stock must use the consolidation method of accounting.
82) A non controlling interest will appear on the consolidated balance sheet when the parent company owns more than 40% but less than 100% of the subsidiary's stock.
83) The parent and subsidiary relationship that is established in consolidation accounting is an example of the entity concept.
84) Controlling interest is also referred to as majority interest.
85) Non-controlling interest occurs when a company owns only 90% of a company they control.
86) The amount paid to purchase all the outstanding shares of a subsidiary company is added to the existing assets of that subsidiary.
87) Goodwill arises when a parent company must pay more to acquire a subsidiary company than the market value of the subsidiary's net assets.
88) Amortization of a discount on a long-term bond investment will decrease the amount of interest revenue recorded by the investor.
89) Short term investments in bonds are quite rare.
90) A held to maturity bond investment must use the effective rate interest method.