Question #12
Reading: Reading 8 Intercorporate Investments
PDF File: Reading 8 Intercorporate Investments.pdf
Page: 6
Status: Correct
Correct Answer: A
Question
Which of the following methods of accounting for investments will reflect the highest net income on a company's income statement?
Answer Choices:
A. Both methods report the same net income
B. Acquisition method
C. Equity method
Explanation
Both methods will report the same net income.