Method of accounting for investment holdings of less than 20 percent (investments in which the investor has little or no influence over the investee), assuming that market prices are available subsequent to acquisition. The fair value method requires that companies classify equity securities at acquisition as available-for-sale securities or trading securities.
(a) fair value method
(b) swap
(c) controlling interest
(d) parent
Ans: (a) fair value method
Business
You might also like to view...
Which of the following is added to operating income to arrive at net income?
A) sales revenue B) cost of goods sold C) interest revenue D) operating expenses
Business
LaShawn has just made the final payment on her home mortgage to her lender. There will still be a lien on her property until the lender records a(n)
A) satisfaction of mortgage. B) reconveyance of mortgage. C) alienation of mortgage. D) reversion of mortgage.
Business