Choose the right answer In joint venture accounting, the equity methodrequires?a) Line-by-line consolidationb) Recognition of share of profits and net assetsc) Cost method onlyd) Fair value accounting

Explanation of Equity Method: The equity method is an accounting technique used to record…

Answered: In joint venture accounting, the equity…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 16DQ

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? Answer share
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Explain thoroughly why it is the answer.
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Ownership percentage can provide a reasonable explanation for the 1. Type of investment (financial influence, subsidiary.. etc) and 2. The appropriate method of accounting to use. Thoroughly explain this statement while giving examples.

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In joint venture accounting, the equity method requires? a) Line-by-line consolidation b) Recognition of share of profits and net assets c) Cost method only d) Fair value accounting