In a classroom discussion of the relative merits of the equity method and the cost method of accounting for operations of subsidiaries , most students of Professor Ahmad's advanced accounting class expressed a preference for the equity method , influenced in large part by their textbook's support for that method . Student Fatima , however , suggested that , for a parent company with several subsidiaries , the cost method of accounting might be more cost - effective because it entails fewer journal entries than does the equity method . In Fatima ' s view , it would be more efficient in such circumstances to make the multitudinous entries for subsidiaries ' operations in the working paper for consolidated financial statements than in several ledger accounts in computerized accounting records . Do you agree with student Fatima ' s view ? Explain

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There is no other information. The question is only this way, and the answer is yes or no, with the reason when answering yes or no.