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What is the main objective of the equity method? To reflect the close relationship between the investor and investee To report for the combined entity
What is the main objective of the equity method?
- To reflect the close relationship between the investor and investee
- To report for the combined entity c. To report changes in the fair value of the investment
d. To show the initial vatue of an investment with zero adjustments
45. What is the main objective of the consolidation method?
a. To reflect the close relationship between the investor and investee
b. To report for the combined entity
c. To report changes in the fair value of the investment
d. To show the initial value of an investment with zero adjustments
46. How do you record/report contingent consideration?
- It is never recorded
- It is recorded as an asset with a debit at its
- It is recorded as an equity account with a credit
- It is recorded as a liability with a credit
- It is only recorded when a company invests in less than 25% of another company
What is the main objective of the equity method?
- To reflect the close relationship between the investor and investee
- To report for the combined entity c. To report changes in the fair value of the investment
d. To show the initial vatue of an investment with zero adjustments
45. What is the main objective of the consolidation method?
a. To reflect the close relationship between the investor and investee
b. To report for the combined entity
c. To report changes in the fair value of the investment
d. To show the initial value of an investment with zero adjustments
46. How do you record/report contingent consideration?
- It is never recorded
- It is recorded as an asset with a debit at its
- It is recorded as an equity account with a credit
- It is recorded as a liability with a credit
- It is only recorded when a company invests in less than 25% of another company
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