Asked by
Ashton Robinson
on Nov 13, 2024
Verified
The method of accounting for investments of 20% to 50% in another company's stock
A) Equity method
B) Parent company
C) Subsidiary company
D) Consolidated financial statements
E) Fair value
F) Unrealized gain or loss on investments.
G) Valuation allowance for investments
H) Dividend yield
I) Amortized cost
J) Cost method
Equity Method
An accounting technique used to record investments in other companies, reflecting the owning company's proportionate share of the investee's profits.
- Understand the accounting treatments for equity method and cost method investments.
Verified Answer
DM
Learning Objectives
- Understand the accounting treatments for equity method and cost method investments.