Describe the equity method and the cost method of investor accounting for acquisitions
Describe the equity method and the cost method of investor accounting for acquisitions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Describe the equity method and the cost method of investor accounting for acquisitions
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Step 1
When there is some acquisition is made in some other business or some part of control is purchased, then it is known as investment in that business or company. It can be dealt by equity method or cost method.
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