List and briefly describe the method used to account for investments in equity securities with more than 50% ownership.
What will be an ideal response?
Consolidation accounting is used by the investing company to account for equity securities that represent more than 50% ownership of the investee's outstanding voting stock. Consolidation accounting is the way to combine the financial statements of two or more companies that have the same owners. Consolidated financial statements combine the balance sheets, income statements, and statements of cash flows of the parent company (the investor) with those of its controlling interest affiliates (the investees). The final outcome is a single set of financial statements, as if the parent and its subsidiaries were one entity.
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Parallel or concurrent tasks are tasks that be done at the same time.
Answer the following statement true (T) or false (F)
If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by
a. reporting an unrealized loss in security investments in the stockholders' equity section of the balance sheet. b. reporting an unrealized loss in security investments in the income statement. c. a footnote to the financial statements. d. a credit to Investment in Trading Securities. e. None of these answer choices is correct.
A movie theater seat is an example of _____________
a. renting durable goods b. closely engaging customers in the service process c. renting portions of a larger physical entity d. the centrality of time to services e. differences in customer choice criteria
"Scrivener's error" is another (fancier) name for a typo
a. True b. False Indicate whether the statement is true or false