The balance of an investment in an associate account cannot be negative.

Name: The balance of an investment in an associate account cannot be negative.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

The balance of an investment in an associate account represents the investor's share in the net assets of the associate. It cannot be negative as it would imply that the investor owes money to the associate. If the investor's share of losses exceeds the investment amount, the balance would become zero but not negative.

The Balance of an Investment in an Associate Account Cannot