Question #25
Reading: Reading 8 Intercorporate Investments
PDF File: Reading 8 Intercorporate Investments.pdf
Page: 10
Status: Unattempted
Correct Answer: A
Question
The consolidation method results in:
Answer Choices:
A. same net income as the equity method but different shareholders' equity
B. same equity as the cost method
C. same net income and shareholders' equity as the equity method
Explanation
Consolidation results in the SAME net income and higher equity as compared to the equity
method.