Cost and equity method Flashcards
1
Q
lllll
A
kkkk
2
Q
Investment in other entities
A
0-20%- cost or marketable securities
20-50% equity method
more than 50% consolidation
3
Q
Equity methods
A
when the investor has significant control over the investees like technological dependency board member of the investee major supplier or customer 20% of voting stock plans to invest in additional stock
4
Q
Goodwill
A
Unidentifiable asset which makes business worth more than identifiable asset
5
Q
Equity in earnings
A
Income account
goes in to the category of other non-operating income
