In accounting for stock investments between 20% and 50% the _______ method is used.
A) consolidated statements
B) controlling interest
C) cost
D) equity

Question

Quizplus · Accepted Answer

The equity method is used when accounting for stock investments between 20% and 50%. This method requires recording the initial investment as a cost and adjusting the investment account periodically to recognize the investor's share of the investee's net income or loss.

In Accounting for Stock Investments Between 20% and 50% the _______