Significant influence equity investments must be accounted for using the equity method. True False

Question

Question

Significant influence equity investments must be accounted for using the equity method. True False

Significant influence equity investments must be accounted for using the equity method.

True

False

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer : True

As

Equity method of investment accounting is used only when investor has significant influence in other company in which investment is made so the statement here is true

Hit Thumbs up if satisfied

For any query mention in comment section please

Thank you

Add a comment

Answer 2

Similar Homework Help Questions

Equity Investments 1) Under the cost method, how are dividends received treated/ accounted for.?

Equity Investments 1) Under the cost method, how are dividends received treated/ accounted for.?
Changes in estimates are accounted for using the prospective approach. True or False

Changes in estimates are accounted for using the prospective approach. True or False
In multiple regression, the intercept must be tested to determine if it is significant. True False...

In multiple regression, the intercept must be tested to determine if it is significant. True False The interpolation forecast represents a forecast using the actual data from which the regression equation was computed. True False

Any cash dividends received from stock investments with insignificant influence are recorded as Dividend Expense. True...

Any cash dividends received from stock investments with insignificant influence are recorded as Dividend Expense. True or False True False
Passive investments in equity Securities die readily marketable investments that management intends to hold for extended...

Passive investments in equity Securities die readily marketable investments that management intends to hold for extended periods. always long-term investments. current assets that require the equity method of accounting for investments Investments with no influence on the investee. 2 pts Question 12 Dewey Inc. owns 64% of Felicity Corporation's outstanding voting stock. Dewey should account for its investment in Felice using: the fair value method the cost method consolidated financial statements. the mark-to-market method 2 pts Question 13 that When...
In a stock acquisition accounted for by the equity method, a portion of the purchase price...

In a stock acquisition accounted for by the equity method, a portion of the purchase price often is attributed to goodwill or to specific assets or liabilities. how are these amounts determined at aquisition? how are these amounts accounted for in subsequent periods?

in a stock acquisition accounted for by the equity method, will there always be goodwill? Does...

in a stock acquisition accounted for by the equity method, will there always be goodwill? Does there have to be goodwill?
Under the equity method, the investor a) debits the Revenue from Investments when the investee reports...

Under the equity method, the investor a) debits the Revenue from Investments when the investee reports income U b) must debit the Equity Investments account when a dividend is received c) must record its share of the investee's net income o d) must use the LIFO method for tax purposes
It is important to understand the concept of "significant influence" as it relates to ownership and...

It is important to understand the concept of "significant influence" as it relates to ownership and control for investments in common stock. Students are to write a paper clearly explaining their perspective of this concept. Equally important is an understanding of the accounting treatment of the cost and equity methods. Students are to provide a written comparative analysis of the differences between the cost and equity methods.

It is important to understand the concept of "significant influence" as it relates to ownership and...

It is important to understand the concept of "significant influence" as it relates to ownership and control for investments in common stock. Students are to write a paper clearly explaining their perspective of this concept. Equally important is an understanding of the accounting treatment of the cost and equity methods. Students are to provide a written comparative analysis of the differences between the cost and equity methods.

Significant influence equity investments must be accounted for using the equity method. True False

Homework Answers

Add Answer to:
Significant influence equity investments must be accounted for using the equity method. True False

Post as a guest

Earn Coins

Equity Investments 1) Under the cost method, how are dividends received treated/ accounted for.?

Changes in estimates are accounted for using the prospective approach. True or False

In multiple regression, the intercept must be tested to determine if it is significant. True False...

Any cash dividends received from stock investments with insignificant influence are recorded as Dividend Expense. True...

Passive investments in equity Securities die readily marketable investments that management intends to hold for extended...

In a stock acquisition accounted for by the equity method, a portion of the purchase price...

in a stock acquisition accounted for by the equity method, will there always be goodwill? Does...

Under the equity method, the investor a) debits the Revenue from Investments when the investee reports...

It is important to understand the concept of "significant influence" as it relates to ownership and...

It is important to understand the concept of "significant influence" as it relates to ownership and...

Significant influence equity investments must be accounted for using the equity method. True False

Homework Answers

Add Answer to: Significant influence equity investments must be accounted for using the equity method. True False

Post as a guest

Earn Coins

Add Answer to:
Significant influence equity investments must be accounted for using the equity method. True False