Accounting > QUESTIONS & ANSWERS > ACC 307 - Chapter 1 & 2 Questions And Answers 2024 (All)
The method that requires income to be recognized by the investor as it is earned by the investee, not when dividends are received. - ANS-✔✔Equity method of accounting Intercompany transfers made... by investee to investor are called? - ANS-✔✔Upstream sale Minimum percentage at which a firm begins using the equity method of accounting - ANS-✔✔20% Investor representation on the Board of Directors is a measure of this - ANS-✔✔Significant influence Method that recognizes only the subsidiary's dividends as income while the asset balance remains at cost - ANS-✔✔Cost method CONTINUES.... [Show More]
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