Match each of the definitions that follow with the appropriate investment term (a-j).
-The method of accounting for investments of 20% to 50% in another company's stock
A)Equity method
B)Parent company
C)Subsidiary company
D)Consolidated financial statements
E)Fair value
F)Unrealized gain or loss on investments.
G)Valuation allowance for investments
H)Dividend yield
I)Amortized cost
J)Cost method

Question

Quizplus · Accepted Answer

The equity method is used for accounting for investments of 20% to 50% in another company's stock, reflecting the investor's ability to exert significant influence over the investee.

Match Each of the Definitions That Follow with the Appropriate