Equity method : It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method. To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Question

Want to see the full answer?

Answer 1

Question

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM!!!

Abc

Ans plz

Answer 2

Question

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Answer 6

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Answer 7

Chapter AH, Problem 9Q

To determine

Equity method: It refers to an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company. Thus, the investor who owns a significant interest by having more than 20%, but less than 50% of ownership, accounts for investments in long-term equity securities under this method.

To explain: the constituents of significant influence when an investor’s financial interest is less than 50%.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. AH - Prob. 1Q Ch. AH - Prob. 2Q Ch. AH - Prob. 3Q Ch. AH - Prob. 4Q Ch. AH - What is the cost of an investment in stock?Ch. AH - Prob. 6Q Ch. AH - Prob. 7Q Ch. AH - Prob. 8Q Ch. AH - Prob. 9Q Ch. AH - Distinguish between the cost and equity methods of...

Solution Summary: The author explains the equity method as an accounting technique used by an investor to determine the income earned on investments made in long-term equity securities of a company.

Concept explainers

Videos

Want to see the full answer?

Chapter AH Solutions