The method of accounting for long-term investments in equity securities that most closely fits the requirements of accrual accounting is the

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The equity method is the most appropriate method for accounting for long-term investments in equity securities because it recognizes income based on the investor's percentage ownership of the investee company. This method allows the investor to reflect the economic substance of the investment over time, which is in accordance with the principles of accrual accounting. The market method and fair value method are used for short-term investments where changes in the market value of the security can be easily measured. The straight-line method is used for depreciation of fixed assets over their useful life.

The Method of Accounting for Long-Term Investments in Equity Securities