Question #57
Reading: Reading 8 Intercorporate Investments
PDF File: Reading 8 Intercorporate Investments.pdf
Page: 25
Status: Unattempted
Correct Answer: B
Question
Which of the following methods of accounting for investments will reflect the highest assets and liabilities on a company's balance sheet?
Answer Choices:
A. Acquisition method
B. Equity method
C. Both methods result in reporting the same balances for assets and liabilities
Explanation
The consolidation method will reflect the highest assets and liabilities. The equity method
would reflect the lowest.